Aviation turbine fuel (ATF) prices were increased by Rs 16 per litre from October 1, while the price of commercial LPG was raised by around Rs 62.50 for a 19-kg cylinder, according to state-owned oil companies. The revisions have been made in line with movements in international benchmark prices.
The price of ATF for domestic airlines has been increased to Rs 137 per litre from Rs 121. The latest hike follows an increase of Rs 6.28 per litre, or 5.46 per cent, in September and a Rs 5 per litre rise in August.
ATF is a major operating expense for airlines and can account for as much as 40 per cent of their operating costs. Changes in jet fuel prices therefore have a direct bearing on airline operating expenses.
Commercial LPG Prices Also Increased
Along with ATF, the price of commercial LPG was increased by Rs 62.59 per 19-kg cylinder. Commercial LPG rates had already been raised by Rs 9.50 per cylinder in September, following substantial reductions of Rs 192 in August and Rs 183.50 in July.
Commercial LPG prices had climbed sharply between February and June, rising by Rs 1,373 per 19-kg cylinder from Rs 1,740.50 to Rs 3,113.50. Prices subsequently declined in July and August before increasing again in September and October.
The latest revisions are linked to changes in international benchmark prices and the rupee-dollar exchange rate. ATF and LPG prices are revised on the first day of each month, while the final rates can vary between states because of local taxes such as VAT.
Domestic LPG Prices Unchanged
The price of domestic LPG used by households has been kept unchanged at Rs 942 for a 14.2-kg cylinder. Domestic cooking gas prices had earlier increased by Rs 89 per cylinder between March and June following supply disruptions and higher international energy prices linked to the West Asia crisis.
Petrol and diesel prices have also remained unchanged. Both fuels had been increased by around Rs 7.50 per litre in May.