New Delhi, Sep 1: Aviation turbine fuel (ATF) and commercial LPG prices have increased from Tuesday, adding to operating costs for airlines, hotels, restaurants and other businesses that rely on these fuels.
State-owned oil marketing companies have raised ATF prices for domestic airlines by Rs 6.28 per litre, or 5.46 per cent, taking the price to Rs 121.28 per litre from Rs 115. This is the second consecutive monthly increase in jet fuel prices.
ATF prices were increased by Rs 5 per litre in August after being reduced by a similar amount in July. Since jet fuel is a major component of airline operating expenses, the latest increase could put further pressure on carrier margins and fuel bills.
The impact on airfares, however, will depend on several factors, including passenger demand, competition, route capacity and the ability of airlines to pass higher fuel costs on to customers.
Commercial LPG prices have also been revised upward. In Delhi, the price of a 19-kg commercial LPG cylinder has increased by Rs 9.50 to Rs 2,747.50 from Rs 2,738. The price of the 5-kg market-priced LPG cylinder has also gone up from Rs 762 to Rs 764.
Prices vary across cities. The 19-kg commercial cylinder is now priced at Rs 2,884 in Kolkata, Rs 2,701 in Mumbai and Rs 2,916.50 in Chennai.
The latest commercial LPG increase follows two consecutive monthly reductions. Prices were cut by Rs 192 per cylinder in August and Rs 183.50 in July, providing some relief to commercial establishments such as restaurants and hotels.
Despite the increase in commercial LPG rates, household consumers have not been affected by the latest revision. The price of the 14.2-kg domestic LPG cylinder remains unchanged.
Commercial LPG prices had risen sharply earlier this year amid disruptions in global energy supplies. The price of a 19-kg cylinder had climbed from Rs 1,740.50 in February to Rs 3,113.50 in June before the subsequent reductions in July and August.
The latest revisions come amid continued volatility in international energy markets and geopolitical uncertainty, particularly in the Middle East. LPG and ATF prices are generally revised at the beginning of each month based on international benchmark prices and currency movements.
The increase in ATF is likely to remain a key cost concern for the aviation sector, while the higher commercial LPG rates could marginally increase operating expenses for businesses dependent on cooking gas.
Petrol and diesel prices remained unchanged with the latest monthly revision.