Updated January 1st, 2024 at 16:34 IST
Jet Fuel prices drop by 4%, commercial LPG rates dip marginally
Petrol and diesel prices, however, remained frozen for a record 21st consecutive month.
In a move that marks the third consecutive monthly reduction, the price of Aviation Turbine Fuel (ATF) or jet fuel was slashed by 4 per cent. Simultaneously, rates for commercial cooking gas (LPG) experienced a marginal reduction of Rs 1.50 per 19-kg cylinder, aligning with international benchmarks.
However, domestic LPG prices, used for household cooking purposes, remained unchanged at Rs 903 per 14.2-kg cylinder.
The price cut for ATF amounted to Rs 4,162.5, representing a 3.9 per cent decrease in the national capital, bringing the cost to Rs 101,993.17 per kilolitre. This reduction follows two previous monthly cuts of nearly 6 per cent in November and 4.6 per cent in December.
The cumulative impact of these three reductions accounts for almost 45 per cent of the Rs 29,391.08 per kilolitre increase implemented over four monthly tranches starting July 1. This reduction is expected to alleviate financial strain on airlines, as jet fuel constitutes 40 per cent of their operating costs.
Additionally, oil companies also reduced the price of commercial LPG, commonly used in establishments such as hotels and restaurants, by Rs 1.50. As a result, a 19-kg commercial LPG cylinder will now cost Rs 1,755.50 in the national capital and Rs 1,708.50 in Mumbai.
This reduction follows a Rs 39.5 per cylinder decrease in rates on December 22. State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) routinely revise cooking gas and ATF prices on the 1st of every month based on the average international price in the previous month.
Petrol and diesel prices, however, remained frozen for a record 21st consecutive month. Petrol stands at Rs 96.72 per litre in the national capital, while diesel is priced at Rs 89.62 per litre.
Despite the norm for state-owned fuel retailers to revise petrol and diesel prices daily based on a 15-day rolling average of benchmark international fuel prices, they have refrained from doing so since April 6, 2022.
(With PTI inputs.)
Published January 1st, 2024 at 16:34 IST