ATF Price Up 5.46%, Commercial LPG Rate Rises ₹9.50

Aviation turbine fuel (ATF) prices on Tuesday were hiked by 5.46%, while the price of commercial LPG, used by establishments such as hotels and restaurants, was raised by ₹9.50 per 19-kg cylinder, in line with a rise in their international benchmarks.

The price of Jet fuel or ATF has been raised by ₹6.28 per litre, or 5.46%, to ₹121.28 per litre for domestic airlines, according to state-owned oil firms.

The increase comes on the back of a ₹5 a litre rise in rates on August 1.

The two increases will add to the financial burden of airlines, for whom ATF makes up to 40% of operating costs.

Commercial LPG prices have increased from ₹2,738 per 19-kg cylinder to ₹2,747.50. The price of the 5-kg market-priced cooking gas LPG cylinder, called 5-kg FTL, has also been increased from ₹762 to ₹764.

The rate hike follows two straight monthly reductions - a steep ₹192 per 19-kg cylinder cut on August 1 and a ₹183.5 cut on July 1. The two reductions in commercial LPG rates on July 1 and August 1 followed the West Asia crisis pushing rates to record highs in June.

After the outbreak of the conflict in late February, commercial LPG rates had risen by a massive ₹1,373 per 19-kg cylinder -- from ₹1,740.50 in February to ₹3,113.50 in June.

ATF and LPG prices -- revised on the first of every month, based on benchmark international prices and foreign exchange rates -- vary from state to state depending on local taxes such as VAT.

Rates of domestic LPG used in household kitchens remain unchanged at ₹942 per 14.2-kg cylinder. Prices of domestic LPG were last raised by ₹29 per 14.2-kg cylinder on June 7. Rates had gone up by ₹60 in March after the West Asia crisis led to supply disruptions and a surge in international energy prices.

Petrol and diesel prices, which were hiked by about ₹7.50 a litre each in May, too, remained unchanged.