Jet Fuel Price Surges 8.5%, Second Increase in a Month; Commercial LPG Rate Cut by Rs 100

On Tuesday, the price of Aviation Turbine Fuel (ATF), commonly known as jet fuel, witnessed a substantial hike of 8.5%, marking the second increase in just a month. The new rate for ATF stands at Rs 98,508.26 per kilolitre in the national capital, with a considerable increase of 7,728.38 per kilolitre. This surge follows four months of declining global rates and is attributed to the recent upturn in international benchmarks.

Conversely, the rate for commercial cooking gas, commonly used in establishments like hotels and restaurants, experienced a reduction of Rs 100 per cylinder. As a result, a 19-kg commercial LPG cylinder now costs Rs 1,680 in the national capital.

The fluctuation in global crude oil prices has played a significant role in influencing both jet fuel and LPG rates. While the jet fuel prices rose in line with the firming up of global crude oil prices, the commercial LPG rates were aligned with the decline in Saudi contract price (CPP), which serves as the benchmark for LPG pricing.

Notably, the domestic LPG price, used for cooking purposes, remained unchanged at Rs 1,103 per 14.2-kg cylinder in the national capital. This rate was last modified on March 1 when it was increased by Rs 50 per cylinder.

In contrast, petrol and diesel prices have remained unchanged for a record 16th consecutive month, with petrol priced at Rs 96.72 per litre and diesel at Rs 89.62 per litre in the national capital. State-owned fuel retailers are mandated to revise petrol and diesel prices daily based on a 15-day rolling average of benchmark international fuel prices. However, they have not adhered to this practice since April 6, 2022.

The government took action to provide relief to consumers by cutting excise duty on petrol and diesel on May 22, following a surge in international oil prices that led to a spike in retail rates. This move aimed to stabilize the prices and alleviate the burden on consumers.