Aviation turbine fuel (ATF) and commercial LPG prices have increased from September 1, adding fresh pressure on businesses that depend heavily on fuel and cooking gas.
The price revision follows movements in international energy markets and is part of the regular monthly adjustment carried out by oil marketing companies.
ATF becomes costlier for airlines
The price of ATF, commonly known as jet fuel, has increased by ₹6.28 per litre, or 5.46%, taking the rate for domestic airlines to ₹121.28 per litre.
This is the second consecutive monthly increase. ATF prices had already gone up by ₹5 per litre on August 1.
The latest increase could raise operating expenses for airlines because aviation fuel is one of the biggest components of an airline’s overall costs. Higher fuel expenses can put pressure on airline margins and may eventually influence airfares, although ticket prices are also determined by demand, competition, taxes and other operating costs.
Commercial LPG price rises by ₹9.50
Businesses such as restaurants, hotels, canteens and food outlets will also have to pay more for commercial LPG.
The price of a 19-kg commercial LPG cylinder has increased from ₹2,738 to ₹2,747.50, representing a ₹9.50 increase.
The price of the 5-kg market-priced LPG cylinder has also risen from ₹762 to ₹764.
The latest increase comes after two significant reductions in commercial LPG prices. Rates were cut by ₹183.50 per cylinder in July and by another ₹192 in August.
Despite those reductions, commercial LPG prices had witnessed a sharp increase earlier in the year amid international energy-market disruptions.
Household LPG prices unchanged
There is some relief for domestic consumers as the price of household cooking gas has not been changed.
The 14.2-kg domestic LPG cylinder continues to cost ₹942. The household LPG price was last increased by ₹29 in June.
This means the latest LPG revision primarily affects commercial users rather than households using subsidised or domestic LPG cylinders.
Petrol and diesel prices remain unchanged
The latest fuel-price revision does not affect petrol and diesel rates. Their prices remain unchanged despite the latest adjustments to ATF and commercial LPG.
Petrol and diesel prices had previously increased by around ₹7.50 per litre each in May.
Why do fuel prices change every month?
ATF and LPG prices are generally revised at the beginning of each month. The changes are influenced by international benchmark prices, crude oil and energy-market movements, as well as fluctuations in the rupee’s exchange rate.
The final retail price can also differ between states because of local taxes, including VAT.
For airlines, the higher ATF price means increased fuel expenditure, while restaurants and other commercial establishments will face a modest rise in their LPG costs. However, the unchanged domestic LPG, petrol and diesel rates mean there is no immediate increase in these major household fuel expenses.
