Businesses such as hotels, restaurants and catering services will get some relief from fuel costs this month after oil marketing companies reduced the price of commercial LPG cylinders. However, the benefit comes alongside a fresh increase in aviation turbine fuel (ATF) prices, reflecting contrasting movements in global energy benchmarks.
Effective August 1, the price of a 19-kg commercial LPG cylinder has been reduced by Rs 192, while aviation fuel has become costlier by around Rs 5 per litre. The monthly revision follows changes in international fuel prices and currency movements, which determine domestic fuel rates.
Following the latest revision, a 19-kg commercial LPG cylinder in Delhi is now priced at Rs 2,738, down from Rs 2,930 last month. This marks the second straight monthly reduction after a Rs 183.50 cut announced on July 1.
The recent decline comes after commercial LPG prices had climbed sharply during the peak of the West Asia conflict. Between February and June, the price of a 19-kg cylinder surged by Rs 1,373, rising from Rs 1,740.50 to Rs 3,113.50 due to disruptions in global energy markets.
Oil companies have also reduced the price of the 5-kg market-priced LPG cylinder. It now costs Rs 762, compared with Rs 808.50 previously.
Since commercial LPG rates are revised on the first day of every month based on international benchmark prices and exchange rate movements, the final retail price varies across states because of local taxes such as Value Added Tax (VAT).
ATF Becomes Costlier After July Cut
Unlike commercial LPG, aviation turbine fuel has become more expensive this month. ATF prices have increased to around Rs 115 per litre from Rs 110 per litre, reversing a similar reduction that had been implemented in July.
The revision is expected to increase operating costs for airlines, as aviation fuel remains one of the biggest components of airline expenditure. Fuel price movements are closely tracked by the aviation industry because they directly influence operating margins and, in some cases, airfares.
Domestic LPG, Petrol And Diesel Prices Stay Unchanged
There has been no change in the price of domestic LPG cylinders used for household cooking. A 14.2-kg domestic LPG cylinder continues to cost Rs 942. Household LPG prices were last revised on June 7, when rates were increased by Rs 29 per cylinder after an earlier Rs 60 hike in March amid rising international energy prices.
Speaking on the issue, Indian Oil Corporation Chairman A S Sahney said the company continues to incur significant losses on domestic LPG sales, noting that the under-recovery stands at Rs 503 per 14.2-kg cylinder because retail prices remain below the actual cost.
Meanwhile, petrol and diesel prices have also been left unchanged. After the increases of about Rs 7.50 per litre announced in May, retail fuel prices have remained stable despite fluctuations in global crude oil markets.
(With agency inputs)
