Increase in LPG and ATF Prices Reflects Global Market Trends
Price Adjustments for LPG and Aviation Fuel
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New Delhi, Oct 1: State-owned oil marketing companies have raised the price of commercial LPG by Rs 62.50 for a 19-kg cylinder, effective Thursday, in response to rising international benchmark prices.
In addition, the cost of aviation turbine fuel (ATF) has been increased by Rs 16 per litre, bringing the price for domestic airlines to Rs 137 per litre from the previous Rs 121 per litre.
This latest adjustment follows a previous increase of Rs 6.28 per litre, or 5.46%, in September, along with a Rs 5 per litre hike in August. ATF constitutes nearly 40% of an airline's operational expenses, making fluctuations in fuel prices a significant concern for carriers.
Furthermore, the rise in commercial LPG prices comes after a Rs 9.50 increase in September, following reductions of Rs 192 in August and Rs 183.50 in July.
Commercial LPG prices had reached an all-time high in June due to global energy supply disruptions and soaring international prices. Between February and June, prices surged by Rs 1,373 per 19-kg cylinder, escalating from Rs 1,740.50 to Rs 3,113.50 before experiencing declines in July and August.
Conversely, domestic LPG prices remain stable at Rs 942. This segment saw an increase of Rs 89 per cylinder from March to June, attributed to supply issues related to the West Asia crisis and rising international energy costs.
The recent price changes are influenced by fluctuations in international benchmark prices and the exchange rate between the rupee and the dollar.
ATF and LPG prices are adjusted on the first day of each month and may differ across states due to local taxes like VAT.
Additionally, the prices of petrol and diesel, which were raised earlier in May, have not changed.