In a significant relief for the aviation sector, state-owned oil marketing companies have announced a sharp reduction in the price of aviation turbine fuel (ATF), commonly known as jet fuel. The move, part of the monthly price revision aligned with global benchmarks, comes after three consecutive months of increases.
Details of the ATF Price Cut Across Major Cities
The price of ATF in the national capital, Delhi, has been slashed by a substantial ₹7,353.75 per kilolitre. With this revision, the new price stands at ₹92,323.02 per kilolitre. Similar reductions have been implemented in other major metros.
In Mumbai, the ATF price now is ₹86,352.19 per kl. For Chennai and Kolkata, the revised prices are ₹95,770 and ₹95,378.02 per kilolitre, respectively. It is important to note that fuel prices vary across different cities in India primarily due to the impact of local taxes and levies.
Reversing the Trend of Hikes
This price cut marks a reversal in the recent trend. Prior to this reduction, jet fuel prices had witnessed three rounds of monthly hikes. On December 1, the rate was increased by ₹5,133.75 per kl, which was a 5.4% rise. Before that, prices had gone up by about 1% on November 1 and by 3.3% on October 1.
The reduction announced on Thursday effectively neutralises more than two-thirds of the cumulative price increase that had occurred since the beginning of October. This development is expected to bring considerable respite to airline companies, for whom fuel constitutes nearly 40% of their total operating costs.
Commercial LPG Gets a Steep Hike
While the aviation sector gets a breather, the hospitality industry faces a fresh cost burden. Alongside the ATF revision, the oil companies have raised the price of the 19-kg commercial LPG cylinder, which is extensively used by hotels and restaurants.
In Delhi, the price of a commercial LPG cylinder has been increased by a steep ₹111. Following this hike, the new price for a cylinder in the capital is ₹1,691.50. This rise will directly impact the operational costs of food businesses across the country.
The monthly price revisions for petroleum products like ATF and LPG are a standard practice by Indian oil marketing companies. These adjustments are made in line with the fluctuations in international crude oil and product prices. The latest changes reflect the dynamic nature of the global energy market and its direct impact on key sectors of the Indian economy.
