In what could give relief to the airlines and hotels & restaurants battling high input costs, oil marketing companies (OMCs) have reduced aviation turbine fuel (ATF) prices by around 12% and the rate for standard commercial LPG cylinders by 1.8% with effect from Monday.
The price of domestic LPG cylinder and petrol & diesel at the retail level has, however, been kept unchanged.
The prices of jet fuels have been reduced for the second time in as many weeks. On July 16, the prices were reduced by 2.2%.
Following the latest reduction, ATF now costs Rs 1,21,915.75 per kilo litre (KL) in Delhi, the latest price notification by state-run fuel retailers showed. It will cost Rs 1,20,875.86/KL in Mumbai, Rs 1,26,516.29 per KL in Chennai and Rs 1,28,425.21 per KL in Kolkata.
ATF prices are revised on the first and 16th of every month based on benchmark international oil rates in the previous fortnight. The benchmark crude prices have softened to around $103/barrel now. ATF constitutes almost 40% of the operating cost of an airline. In all, ATF rates have been increased eleven times since the start of the year.
Meanwhile, the price of commercial LPG cylinder (19 kg) has also been reduced by Rs 36 a cylinder on Monday, for the fourth time since May, following a stiff Rs 198 a cylinder reduction with effect from July 1. Following the reduction, a 19 kg cylinder now costs Rs 1,976.5 per cylinder in Delhi.
According to Indian Oil Corporation (IOCL), the price has also been reduced in the same range in other metros. Commercial LPG rates are revised once a month.
This is the fourth reduction in commercial LPG prices in three months. Following July 1, prices were reduced by Rs 8 per cylinder on July 6. On June 1, the price was reduced by Rs 135 a cylinder in Delhi.
A 14.2 kg LPG cylinder now costs Rs 1,053 in Delhi, Rs 1,079 in Kolkata, Rs 1,052.5 in Mumbai and Rs 1,068.5 in Chennai. The retail price of petrol and diesel has remained unchanged in the national capital since May 22 to stand at Rs 96.72 a litre and Rs 89.61 per litre.