Commercial LPG prices cut by Rs 51.50 per 19-kg cylinder; ATF prices reduced

Commercial LPG prices have been reduced by Rs 51.50 per 19-kg cylinder. The sixth consecutive reduction since April has brought down the price of a 19-kg commercial LPG cylinder to Rs 1,580 in the national capital. Moreover, Aviation turbine fuel (ATF) prices were also reduced by 1.4 per cent as state-owned fuel retailers adjusted rates in response to a decline in global benchmark prices. ATF is now priced at Rs 90,713.52 per kilolitre in New Delhi after a cut of Rs 1,308.41 per kilolitre.

Since April, commercial LPG prices have been cut by Rs 223 per cylinder. The fall in LPG prices is attributed to softened benchmark rates amid lower summer demand.

The reduction in ATF prices follows a period of consecutive increases, with rates having risen by Rs 8,949.38 per kl due to surges in international oil prices driven by geopolitical tensions and trade conflicts. This adjustment is expected to ease the financial burden on commercial airlines, where fuel accounts for nearly 40% of operating costs. The airlines have been under pressure to maintain profitability amidst fluctuating fuel prices.

While ATF and LPG prices have seen reductions, domestic LPG prices remain unchanged at Rs 853 for a 14.2-kg cylinder, following a Rs 50 increase in April. These pricing adjustments are conducted monthly by major state-owned oil companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), based on international benchmarks and forex rates.

The ATF price reductions vary across cities due to local taxes. For instance, Mumbai saw a decrease to Rs 84,832.83 per kl, while Chennai and Kolkata experienced increases to Rs 94,151.96 and Rs 93,886.18 per kl, respectively.

Despite recent reductions, global oil prices continue to experience volatility, often driven by geopolitical developments. While the current cuts provide temporary relief, the long-term pricing outlook remains uncertain amid potential market fluctuations. Analysts suggest that airlines may benefit in the short term, but sustained cost management strategies are crucial given the oil market's unpredictability.

The petrol and diesel prices, however, remain unchanged since mid-March of the previous year, when rates were reduced by Rs 2 per litre. Current prices stand at Rs 94.72 per litre for petrol and Rs 87.62 for diesel in Delhi.