‘Phased price hikes are imminent’: OMC sources after increase in ATF, commercial LPG rates

There is likely to be further increase in aviation turbine fuel (ATF) prices, as well as of premium petrol and diesel variants, said oil marketing companies sources. The price hikes are due to the evolving nature of the West Asia conflict that has pushed energy rates. 

According to OMC sources, due to the evolving West Asia situation, prices of ATF and premium petrol and diesel are expected to go up in a phased manner. “The evolving West Asia crisis means phased price hikes are imminent,” said the sources.

This comes after ATF prices, also known as jet fuel, more than doubled on Wednesday to a record Rs 2.07 lakh per kilolitre. At the same time, commercial LPG rates were raised by Rs 195.50 per 19-kg cylinder.

In Delhi, the ATF price increased by Rs 110,703.08 per kilolitre, or 114.5 per cent, reaching Rs 207,341.22 per kilolitre, according to state-owned fuel retailers. This is the first time ATF prices have crossed the Rs 2 lakh per kilolitre mark.

The previous highest price was in 2022, when ATF rates rose to Rs 1.1 lakh per kilolitre after a surge in oil prices following Russia’s invasion of Ukraine. This latest increase is the second monthly rise, with prices having gone up by 5.7 per cent (Rs 5,244.75 per kilolitre) on March 1.

The rising ATF prices are expected to increase costs for airlines, which are already facing higher fuel expenses due to longer flight routes to western destinations caused by airspace closures amid the conflict. Fuel accounts for about 40 per cent of an airline's operating costs.

Along with ATF, commercial LPG prices have been increased by Rs 195.50 per 19-kg cylinder. The new price for a 19-kg commercial LPG cylinder in Delhi is Rs 2,078.50. The last increase for commercial LPG was Rs 114.50 per cylinder on March 1. Domestic cooking gas LPG prices have not changed.

Global oil prices have risen by nearly 50 per cent due to disruptions in energy supply chains caused by the conflict in West Asia.