Oil Firms Raise Commercial LPG and Aviation Fuel Prices

New Delhi, November 1: The new month has brought higher prices for commercial LPG and aviation turbine fuel. Oil marketing companies have revised the rates, while domestic LPG and retail fuel prices have not changed.

For commercial users, the price of the 19-kg LPG cylinder has increased by Rs 10, from Rs 2,810 to Rs 2,820. This is the second month in a row of commercial LPG price hikes. The rate was raised by Rs 62.50 per cylinder on October 1, following a Rs 9.50 increase in September.

The trend had been downward for a time. Commercial LPG prices were cut by Rs 183.50 in July and Rs 192 in August. Still, between February and June, the cylinder price rose by Rs 1,373 in total, moving from Rs 1,740.50 to a record Rs 3,113.50 per cylinder.

As per the revised rates, a new 5-kg free trade LPG (FTL) cylinder connection costs Rs 1,903, and its refill is priced at Rs 782.

Domestic consumers will not see any change. The 14.2-kg household LPG cylinder remains priced at Rs 942. Petrol and diesel prices have also stayed the same since their May increase.

In a fresh blow to the aviation sector, ATF has become Rs 1.37 per litre costlier. From November 1, it is priced at Rs 138.50 per litre, compared with Rs 137.12 earlier. This is the fourth consecutive month of ATF price increases, a result of firm global prices for crude oil and jet fuel.

ATF forms roughly 40 per cent of airlines' operating costs, so the change is likely to weigh directly on their finances.

Oil companies review LPG and ATF prices every month on the first, based on international benchmark prices and the rupee-dollar exchange rate. Local VAT and other state taxes can cause actual prices to vary.