- Indian Oil raised Aviation Turbine Fuel price by Rs 5 per litre for domestic airlines
- ATF price increased from Rs 110 to Rs 115 per litre after a Rs 5 cut in July
- Commercial LPG cylinder prices reduced, benefiting hotels and caterers from Aug 1
Indian Oil Corporation Ltd. (IOCL) has raised the price of Aviation Turbine Fuel (ATF) by Rs 5 per litre, according to company sources. For domestic airlines, the price of ATF has increased from Rs 110 per litre to Rs 115 per litre. In July, ATF prices were cut by Rs 5/ litre
Jet fuel reportedly constitutes between 35% and 40% of an airline's overall operational expenditure in India. As one of the largest expenses for airlines, aviation turbine fuel (ATF) plays a crucial role in determining operating costs.
Following this hike, there is a possibility of an increase in airfares. This hike will raise fuel costs for domestic airline companies. While fluctuations in fuel prices can influence airline spending, fares are also driven by demand, competition and network capacity.
At the same time, IOCL has announced a reduction in commercial LPG cylinder prices effective Aug. 1. The decision is set to benefit restaurants, hotels, caterers and other businesses that rely on commercial gas supplies.
The retail price of a 19-kg commercial LPG cylinder has been brought down by Rs 192, taking it to Rs 2,738 from the previous Rs 2,930. A 5-kg Free Trade LPG (FTL) commercial refill has also become cheaper by Rs 46.50 and is now available at Rs 762.
This marks the second monthly decline in commercial LPG prices after a Rs 183.50 reduction implemented on July 1. In contrast, the latest adjustment to aviation turbine fuel restores prices to the level seen before last month's cut.
The revised ATF rates are limited to domestic aviation. Carriers flying international sectors will continue to buy jet fuel under the established global pricing model, with no change to the existing arrangement.
LPG prices had surged earlier this year as the West Asia conflict triggered a rise in international energy markets.
No changes have been announced for household LPG cylinders. In Delhi, the price of a 14.2-kg domestic cylinder remains fixed at Rs 942.
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