An Indian Oil Aviaton fuel tanker seen with a row of Aircraft at the IGI domestic terminal. File.
| Photo Credit: KRISHNAN VV
The price of Aviation turbine fuel (ATF) was cut by 4% on January 1 and commercial cooking gas (LPG) rates were marginally lowered by ₹1.50 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.
ATF price was cut by ₹4,162.5, or 3.9%, in the national capital to ₹1,01,993.17 per kl, according to price notifications of state-owned fuel retailers. This is the third straight monthly reduction in jet fuel prices. ATF price was cut by almost 6% (₹6,854.25 per kl) in November and by ₹5,189.25, or 4.6%, in December. These reductions have wiped away almost 45% of the Rs 29,391.08 per kl increase in rates effected in four monthly tranches starting July 1.
Fuel makes up for 40% of an airline’s operating cost, and these reductions will help financially stressed airlines.
Oil firms have also reduced the price of commercial LPG — used in various establishments such as hotels and restaurants — by ₹1.50. A 19-kg commercial LPG cylinder will now cost ₹1,755.50 in Delhi and ₹1,708.50 in Mumbai. The price hike follows a ₹39.5 per cylinder reduction in rates effected on December 22.
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 were unchanged. . 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.