News Oil & Gas

ATF price hiked 5%, commercial LPG gets costlier by Rs 209, effective October 1; domestic prices unchanged


Oil companies have raised the prices of commercial LPG, the type used in establishments like hotels and restaurants, by Rs 209. As a result, a 19-kg commercial LPG cylinder now costs Rs 1,731.50 in the national capital and Rs 1,684 in Mumbai. This price hike largely reverses the Rs 157.5 per cylinder reduction in commercial LPG prices that was implemented on September 1, along with a Rs 100 reduction on August 1.

The increase in the benchmark Saudi Contract Price (CP) for LPG has been a contributing factor to these price adjustments. This increase follows a trend in crude oil prices, which have been rising in recent weeks due to concerns about supply.

Jet fuel prices, also known as Aviation Turbine Fuel (ATF), have been hiked by 5 percent, marking the fourth consecutive monthly increase since July. This increase comes on the heels of the steepest-ever 14.1 percent surge, amounting to Rs 13,911.07 per kilolitre, that was implemented on September 1. Additionally, there was an 8.5 percent or Rs 7,728.38 per kilolitre increase on August 1. The recent hike in ATF prices has seen a rise of Rs 5,779.84 per kilolitre, or 5.1 percent, in the national capital, bringing the price to Rs 118,199.17 per kilolitre from Rs 112,419.33.

Jet fuel is a significant component of an airline’s operating cost, constituting 40 percent of the total expenditure. This latest increase in ATF prices places additional financial strain on airlines that are already grappling with financial challenges.

On July 1, there was a 1.65 percent increase, equivalent to Rs 1,476.79 per kilolitre, in ATF prices. In total, ATF prices have seen a record increase of Rs 29,391.08 per kilolitre over four consecutive hikes.

It’s important to note that domestic LPG prices, the kind used in household kitchens for cooking purposes, remain unchanged at Rs 903 per 14.2-kg cylinder.The price of domestic LPG — used in the kitchen for cooking purposes — remained unchanged at Rs 903 per 14.2-kg cylinder in the national capital.Rates were last cut by Rs 200 on August 30.

This increase in LPG prices comes on the heels of the Union Cabinet’s approval of approximately 75 lakh new LPG connections under the Ujjwala Yojana in September. The initiative aims to provide these connections over the next three years at an estimated cost of Rs 1650 crore.

Anurag Thakur, Minister for Information and Broadcasting, emphasized that these connections are being distributed to households relying on wood for cooking, particularly impacting rural women. It’s worth noting that these new connections will be provided without requiring an initial deposit, with the Central government initially covering the expenses, which will later be reimbursed by the oil marketing companies (OMCs).


Source link