ATF Price Hiked 5.46%; Commercial LPG Cylinder Gets Rs 9.50 Increase
Aviation turbine fuel (ATF) prices were increased by 5.46% on Tuesday, while the price of commercial LPG used by hotels, restaurants and other establishments was raised by Rs 9.50 per 19-kg cylinder, following changes in international benchmark prices.
ATF Price Rises to Rs 121.28 Per Litre
According to state-owned oil marketing companies, the price of jet fuel, or ATF, has been increased by Rs 6.28 per litre to Rs 121.28 per litre for domestic airlines.
This follows an increase of Rs 5 per litre implemented on August 1.
The back-to-back hikes are expected to put additional pressure on airline finances, as ATF can account for up to 40% of an airline's operating expenses.
Commercial LPG Cylinder Now Costs Rs 2,747.50
The price of a 19-kg commercial LPG cylinder has been increased from Rs 2,738 to Rs 2,747.50.
The price of the market-priced 5-kg LPG cylinder, known as the 5-kg FTL cylinder, has also been raised from Rs 762 to Rs 764.
The latest increase comes after two consecutive monthly reductions. Commercial LPG prices were cut by Rs 192 per 19-kg cylinder on August 1 and by Rs 183.50 on July 1.
Commercial LPG Prices Had Surged Earlier
The earlier reductions came after commercial LPG prices had climbed sharply amid the West Asia crisis, which pushed international energy prices higher.
Following the outbreak of the conflict in late February, the price of a 19-kg commercial LPG cylinder surged by Rs 1,373, rising from Rs 1,740.50 in February to Rs 3,113.50 in June.
Domestic LPG Price Remains Unchanged
For households, however, there is no change in the price of domestic LPG.
The 14.2-kg household cooking gas cylinder continues to cost Rs 942. Domestic LPG prices were last increased by Rs 29 per cylinder on June 7.
The rate had earlier risen by Rs 60 in March following supply disruptions and a rise in international energy prices linked to the West Asia crisis.
Petrol and Diesel Prices Unchanged
Petrol and diesel prices also remained unchanged on Tuesday.
Both fuels had been increased by around Rs 7.50 per litre in May and have not seen another revision since then.
Why Do LPG and ATF Prices Change?
ATF and LPG prices are generally revised at the beginning of every month based on international benchmark prices and foreign exchange movements.
The final retail rates can vary from state to state because of differences in local taxes, including VAT.
The latest ATF and commercial LPG increases therefore reflect movements in international energy markets, while household LPG, petrol and diesel prices remain unchanged for now. ALSO READ: 15-Day Sugar Quota From September: Govt Move to Curb Hoarding
