Commercial LPG Cylinder Price Rises by Rs 10, ATF Rates See Fourth Straight Monthly Hike

New Delhi: Consumers and businesses will face higher commercial cooking gas costs from Sunday after oil marketing companies increased the price of a 19-kg commercial LPG cylinder by Rs 10 to Rs 2,820. Aviation turbine fuel (ATF), commonly known as jet fuel, has also become more expensive, with rates rising by Rs 1.37 per litre.

The latest revision marks the second consecutive monthly increase in commercial LPG prices. On October 1, the price of a 19-kg cylinder was raised by Rs 62.50, following another increase of Rs 9.50 on September 1.

The latest hikes come after two successive monthly reductions in July and August, when commercial LPG prices were cut by Rs 183.50 and Rs 192 per cylinder, respectively.

Between February and June, commercial LPG prices had surged by Rs 1,373 per cylinder, climbing from Rs 1,740.50 to a record Rs 3,113.50 before declining over the next two months.

According to the revised price list, a 5-kg Free Trade LPG (FTL) cylinder for a new connection now costs Rs 1,903, while a refill is priced at Rs 782.

However, households will get some relief as the price of domestic LPG remains unchanged at Rs 942 for a standard 14.2-kg cylinder. Petrol and diesel prices have also been kept unchanged. Both fuels had last witnessed an increase of around Rs 7.50 per litre in May.

Meanwhile, ATF prices have been raised for the fourth consecutive month. The fuel will now cost Rs 138.50 per litre, up from Rs 137.12, according to state-owned oil companies.

The continued rise in jet fuel prices is being attributed to firm international oil benchmarks. ATF is a major component of airline operating expenses, accounting for as much as 40 per cent of their total costs. The latest increase could therefore add to the financial pressure on airlines, although its eventual impact on airfares will depend on individual carriers' pricing decisions.

The monthly revisions in LPG and ATF prices are determined by movements in international benchmark rates and fluctuations in the rupee-dollar exchange rate. The revised rates come into effect on the first day of every month.

Actual prices may vary from state to state because of differences in local taxes, including value-added tax (VAT).

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