ATF Price Slashed by 3%, Commercial LPG Cheaper by ₹24

New Delhi, June 1 (PTI) — The price of aviation turbine fuel (ATF), commonly known as jet fuel, was reduced by 3 percent on Sunday, marking the third consecutive monthly cut as international benchmark prices continue to soften.

This decline in global oil and gas prices also resulted in a Rs 24 decrease per 19-kg cylinder of commercial LPG, which is widely used in hotels and restaurants.

In the national capital, one of India's busiest aviation hubs, the ATF price dropped by Rs 2,414.25 per kilolitre—a 2.82 percent reduction—bringing it down to Rs 83,072.55 per kilolitre, according to state-run fuel retailers.

Sunday’s cut follows previous reductions of 4.4 percent (Rs 3,954.38 per kl) on May 1 and a sharp 6.15 percent (Rs 5,870.54 per kl) on April 1. Collectively, these cuts have more than compensated for earlier price hikes this year.

The ATF price reduction is expected to ease financial pressure on commercial airlines, where fuel accounts for nearly 40 percent of operating costs.

No immediate response was available from airline representatives regarding the price drop.

Meanwhile, ATF prices in other major cities were also lowered: Mumbai saw a cut from Rs 79,855.59 to Rs 77,602.73 per kilolitre, while Chennai and Kolkata recorded new rates of Rs 86,103.25 and Rs 86,052.57 per kilolitre, respectively.

Oil companies have also reduced the price of commercial LPG by Rs 24 per 19-kg cylinder. Commercial LPG now costs Rs 1,723.50 in the national capital and Rs 1,647.50 in Mumbai.

This latest reduction follows a Rs 14.50 cut on May 1 and a Rs 41 cut per cylinder on April 1.

The drop in prices comes amid a recent softening of international oil prices, influenced by the global trade war that has dampened fuel demand prospects worldwide.

It’s important to note that the prices of ATF and LPG vary across states due to local taxes and levies, including VAT.

However, the price of cooking gas for domestic households remains unchanged at Rs 853 per 14.2-kg cylinder, following a Rs 50 hike per cylinder in April.

State-owned firms—Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL)—adjust prices of ATF and cooking gas on the first day of every month, based on the average international benchmark fuel prices and foreign exchange rates.

While international oil prices have declined, domestic petrol and diesel prices remain frozen. The last price cut of Rs 2 per litre was made in mid-March last year, ahead of the general elections. Currently, petrol costs Rs 94.72 per litre in Delhi, with diesel priced at Rs 87.62.