Festive season sees jet fuel, commercial LPG price hike; domestic LPG rates hold steady

Oil marketing companies have implemented an increase in jet fuel and commercial LPG prices, taking effect immediately amid the ongoing festive season. This is the fourth consecutive monthly hike for commercial LPG, while domestic LPG rates remain stable.

The price of a 19-kg commercial LPG cylinder has risen by Rs 62, bringing the rate in Delhi to Rs 1,802. Prices for commercial LPG vary across metro cities, with Kolkata seeing the highest at Rs 1,911.50, followed by Chennai at Rs 1,964.50, while Mumbai stands at Rs 1,754.50. Meanwhile, the 5-kg Free Trade LPG cylinder also saw an increase of Rs 15.

This new price adjustment follows recent hikes in commercial LPG costs, including a Rs 48.5 increase on 1 October, a Rs 39 hike on 1 September and Rs 6.5 previously on 1 August, marking a cumulative increase of Rs 156 across the past four months. Before the recent hikes, prices were reduced four times, lowering rates by Rs 148 per cylinder.

The latest increase is expected to impact restaurants, hotels, and other businesses that rely on commercial LPG, potentially leading to price hikes across services dependent on LPG.

Jet fuel, or aviation turbine fuel (ATF), also saw an increase of 3.3 per cent, or Rs 2,941.5 per kilolitre, setting the rate at Rs 90,538.72 in Delhi. This price change comes after back-to-back cuts in previous months, including a 6.3 per cent reduction in October and a 4.58 per cent decrease in September, which had temporarily lowered rates to their lowest for the year. In Mumbai, the ATF rate increased from Rs 81,866.13 to Rs 84,642.91 per kilolitre.

In contrast, prices for domestic LPG cylinders, such as the standard 14.2-kg cylinder, remain at Rs 803 in Delhi, providing some financial relief for households. This stable pricing has kept residential cooking fuel costs steady, despite fluctuations in the commercial market.

According to data from the Petroleum Planning and Analysis Cell, as of the close of FY23, India had 31.4 crore domestic LPG connections, including 9.59 crore under the Pradhan Mantri Ujjwala Yojana. Overall LPG consumption reached 28.5 million metric tonnes in FY23, with a 0.9 per cent year-on-year growth.

State-owned oil companies, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), revise ATF and LPG prices monthly, aligning adjustments with global fuel prices and exchange rates.