Jet fuel or aviation turbine fuel (ATF) prices on Wednesday were cut by almost 6% after four rounds of monthly increases since July, while commercial cooking gas (LPG) rates were raised by a steep ₹101.5 per 19-kg cylinder in line with international benchmarks. However, the price of domestic LPG — used in household kitchens for cooking purposes —remained unchanged at ₹903 per 14.2-kg cylinder.

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Aviation turbine fuel (ATF) prices were cut by ₹6,854.25 or 5.79% in the national capital to ₹1,11,344.92 per kilolitre from ₹1,18,199.17, according to a price notification of state-owned fuel retailers.

The price cut comes from four rounds of increases, the last on October 1, when rates were hiked by ₹5,779.84/kl or 5.1%. Prior to that ATF prices had gone up by the steepest-ever: 14.1% or ₹13,911.07/kl on September 1, and 8.5% or ₹7,728.38/kl on August 1.

On July 1, ATF prices had gone up by 1.65% or ₹1,476.79/kl. In four increases, ATF prices have gone up by a record ₹29,391.08/kl. Wednesday's cut in prices of jet fuel, which makes up for 40% of an airline's operating cost, will ease the burden on already financially strained airlines.

Alongside, oil firms raised the price of commercial LPG — used in various establishments such as hotels and restaurants — by ₹101.50. A 19-kg commercial LPG cylinder will now cost ₹1,833 in the national capital and ₹1,785.50 in Mumbai. This is the second straight monthly increase in rates. Prices were hiked by a steep ₹209 per 19-kg cylinder on October 1.

Saudi contract price (CP), the benchmark used for pricing of LPG, has increased following a firming-up trend in crude oil prices witnessed in the last few weeks oversupply concerns. Oil companies, which had on August 30, cut domestic LPG rates by ₹200 per 14.2-kg cylinder, did not change the price of 14.2-kg cylinders.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st of every month, based on the average international price in the previous month.

Petrol and diesel prices remained on freeze for a record 19th month in a row. Petrol costs ₹96.72 per litre in Delhi and diesel costs ₹89.62 per litre.

State-owned fuel retailers are supposed to revise petrol and diesel prices daily, based on a 15-day rolling average of benchmark international fuel prices, but they haven't done that since April 6, 2022. Prices were last changed on May 22, when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.

(Edited by : Ayushi Agarwal)

First Published:Nov 1, 2023 2:44 PM IST