Jet fuel price cut by Rs 5 per litre; how much relief provided on commercial cylinders
Following a drop in oil prices in the international market, the price of jet fuel—or ATF (Aviation Turbine Fuel)—has been reduced by Rs 5 per litre. The price now stands at Rs 110 per litre.
The reduction comes after international oil prices softened in recent weeks following easing geopolitical tensions in West Asia and improved supply expectations, providing relief to airlines for which fuel accounts for the single-largest operating expense.
The latest revision is expected to lower operating costs for domestic carriers, although the extent of the benefit will depend on airlines' fuel procurement and hedging strategies.
ATF prices are revised on the first day of every month based on the average international benchmark prices and the prevailing rupee-dollar exchange rate.
Meanwhile, relief has also been announced regarding the prices of commercial LPG used in hotels and restaurants; the price of a 19-kg cylinder has been reduced by Rs 183.50. This marks the first price reduction of the year.
Commercial LPG will now cost Rs 2,930 per cylinder after touching a record Rs 3,113 last month as geopolitical tensions pushed up crude oil prices.
Alongside, the 5-kg marked-priced or Free Trade LPG (FTL) cylinder cost was also reduced by Rs 13 to Rs 808.50 per 5-kg cylinder.
Prices of domestic 14.2-kg LPG cylinders were left unchanged at Rs 942.
The reductions come after international oil prices softened in recent weeks following easing geopolitical tensions in West Asia and improved supply expectations, providing relief to airlines for which fuel accounts for the single-largest operating expense.
Currently, oil prices are easing and supplies have improved, amidst hopes for a permanent ceasefire agreement between the US and Iran.