OMCs hike ATF prices by 5%, commercial LPG price up over ₹200
₹1,18,199.17 per kilolitre (Kl), up 5.14% from ₹1,12,419.33 last month. Similarly, the price of jet fuel in Kolkata increased 4.65% to ₹1,26,697.08 per Kl. In other key cities of Mumbai and Chennai, jet fuel is now priced at ₹1,10,592.31 and ₹1,22,423.92 per Kl, according to data from the OMCs.
This increase in ATF prices may lead to a rise in airline tickets as the country has entered the festive season during which domestic travel also gains pace. ATF price comprises of around 40% of the ticket price. This is the fourth consecutive increase in jet fuel prices.
An S&P Global Commodity Insights report in August said that air travel measured by flights, returned to pre-pandemic level in India but jet fuel demand is still expected to remain below 2019 level in 2023, due to a slower rebound in long-haul travel and distressed airline industry. Further, in a move which may raise expenses for hotels and restaurants, OMCs have increased the the price of commercial LPG cylinders by over ₹200 across the country. In the national capital, the 19-kg commercial LPG is sold for ₹1,731.50, higher by ₹209 from the price last month.
Similarly, post the price hike, commercial cooking gas cylinders in Kolkata, Mumbai and Chennai, would cost ₹1,839.50, ₹1,684, ₹1,898 per cylinder. The move to raise commercial cooking gas prices comes at the time the country is witnessing high inflation. In August, although the retail inflation eased, it was above the Reserve Bank of India’s (RBI) upper tolerance limit of 6%.
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