ATF prices hiked 5.46 per cent for domestic airlines, Commercial LPG rate rises Rs 9.50

Representational Image. File pic.

The state-owned oil companies on Tuesday increased the prices of Aviation turbine fuel (ATF) by 5.46 per cent and hiked the prices of commercial LPG by Rs 9.50 per 19-kg cylinder, according to news agency PTI.

The prices of ATF and LPG are revised on the first of every month, based on benchmark international prices and foreign exchange rates, which vary from state to state depending on local taxes such as value added tax (VAT).

ATF price rise

This is the second consecutive month where the prices of Jet fuel or ATF has been raised. The prices have been hiked by Rs 6.28 per litre, or 5.46 per cent, to Rs 121.28 per litre for domestic airlines. On August 1, the rates had been increased by Rs 5 per litre.

The back-to-back increases is expected to add to the financial burden of airlines, as ATF makes up to 40 per cent of operating costs.

Commercial LPG prices hiked

Prices of Commercial LPG, used by establishments such as hotels and restaurants, have increased from Rs 2,738 per 19-kg cylinder to Rs 2,747.50, while the price of the 5-kg market-priced cooking gas LPG cylinder, called 5-kg FTL, has also been increased from Rs 762 to Rs 764.

After two straight months of price reductions in commercial LPG, where the prices were slashed by Rs 183.5 on July 1 and Rs 192 in August 1, the rates have been hiked in the 19-kg cylinder on September 1.

The two reductions in commercial LPG rates on July 1 and August 1 came after the West Asia crisis that pushed the fuel rates to record high.

Following the the US-Iran conflict that started in February, commercial LPG rates had risen by a massive Rs 1,373 per 19-kg cylinder to Rs 3,113.50 in June. It was priced at Rs 1,740.50 in February.

Domestic LPG cylinder, petrol, diesel prices unchanged

However, the rates of the domestic LPG used for household consumption remain unchanged at Rs 942 per 14.2-kg cylinder.

The prices of domestic LPG were last raised by Rs 29 per 14.2-kg cylinder on June 7, as per PTI. After the West Asia crisis led to supply disruptions and a surge in international energy prices, the rates had increased by Rs 60 in March.

Besides, prices of other fuels such as petrol and diesel, which were hiked by about Rs 7.50 a litre each in May, too, remained unchanged.

(With inputs from PTI)