New Delhi, Dec 1: In a fresh round of price hikes driven by global oil trends, the cost of aviation turbine fuel (ATF) and commercial liquefied petroleum gas (LPG) has risen sharply, impacting industries and businesses nationwide. State-owned fuel retailers announced a 1.45% hike in jet fuel prices, alongside a ₹16.5 increase per 19-kg cylinder of commercial LPG, effective immediately.
The price of ATF, crucial for the aviation sector, has been increased by ₹1,318.12 per kilolitre, bringing the rate to ₹91,856.84 per kilolitre in Delhi. This marks the second consecutive monthly hike following a ₹2,941.5 per kilolitre (3.3%) increase in November. These adjustments reverse the downward trend witnessed earlier this year, with rates dropping by 6.3% in October and 4.58% in September.
In Mumbai, a major aviation hub, the price of ATF rose to ₹85,861.02 per kilolitre from ₹84,642.91. The increases reflect the fluctuating international crude oil market and the dollar-rupee exchange rate.
Commercial LPG, widely used in hotels, restaurants, and catering businesses, saw its fifth straight monthly increase. The price of a 19-kg cylinder has risen by ₹16.5, reaching ₹1,818.50 in Delhi, the highest in a year. Over the last five months, commercial LPG rates have surged by ₹172.5 per cylinder.
In comparison, earlier reductions in the price of commercial LPG from May to July, totaling ₹148 per cylinder, have been entirely negated by the recent hikes. The current prices for a 19-kg cylinder stand at ₹1,771 in Mumbai, ₹1,927 in Kolkata, and ₹1,980 in Chennai.
While commercial LPG prices climb, domestic LPG rates remain unchanged at ₹803 per 14.2-kg cylinder. Petrol and diesel prices also continue to be frozen, with petrol priced at ₹94.72 per litre and diesel at ₹87.62 per litre in Delhi. Fuel rates have been stable since a ₹2-per-litre cut in March, ahead of the general elections.
State-run oil companies, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), revise fuel prices on the first day of each month. These adjustments are based on the average global benchmark prices and currency exchange rates.
The price variations across states are influenced by local taxes, including VAT. For businesses reliant on aviation and commercial LPG, the steady rise in prices poses challenges, especially as rates hit year-high levels.
The upward trajectory of these essential fuels underscores the ripple effects of volatile global oil markets and their implications for India’s economy.