Increase in LPG and ATF Prices: Impact on Airlines and Consumers

State-owned oil marketing companies have announced a price increase for 19-kg commercial LPG cylinders and aviation turbine fuel (ATF), affecting domestic airlines and consumers. The ATF price has risen by Rs 6.28 per litre, marking the second consecutive monthly increase. This surge in fuel costs is expected to impact airfares, while Mahanagar Gas Ltd has also raised CNG and domestic PNG prices in Mumbai due to rising input gas costs linked to international markets. The government's recent production targets for LPG further complicate the situation. Read on to understand the implications of these changes.

By Narendra Chaudhary Sep 1, 2026, 12:44 IST

Price Hikes Announced for LPG and Aviation Fuel

(Representational image/PTI)

New Delhi, September 1: State-run oil marketing firms have raised the cost of 19-kg commercial LPG cylinders by Rs 9.50. Additionally, the price of aviation turbine fuel (ATF) for domestic airlines has surged by 5.46 percent, translating to an increase of Rs 6.28 per litre, effective from Tuesday.

The new ATF price is now Rs 121.28 per litre, marking the second consecutive month of price hikes.

Previously, ATF prices were raised by Rs 5 per litre in August, following a similar reduction in July.

Jet fuel constitutes approximately 35-40 percent of the total operating costs for airlines in India, making fluctuations in ATF prices a significant concern for domestic carriers.

This latest increase is likely to elevate fuel expenses for airlines, potentially leading to higher airfares, although ticket prices will also be influenced by factors such as passenger demand, competition, and available capacity.

In a related development, Mahanagar Gas Ltd (MGL) has announced an increase in the prices of CNG and domestic PNG in Mumbai, attributing the rise to a sharp increase in input gas prices linked to international markets amid the ongoing crisis in the Middle East.

CNG prices in Mumbai have been raised by Rs 2 per kg, now costing Rs 88, while domestic PNG prices have gone up by Rs 1 per standard cubic metre (SCM), with these new rates taking effect from September 1.

MGL stated, "Due to the ongoing crisis in the Middle East, which has led to a significant rise in input gas prices linked to international indices, we have revised CNG prices."

The recent hike in LPG prices follows the government's recent decision to set maximum cooking gas production targets for both public and private refineries and upstream companies.

Earlier in August, the Petroleum and Natural Gas Ministry issued an order specifying maximum LPG production levels for 21 refineries and upstream companies, with a combined production capacity of 63,810 tonnes per day.