OMCs reduce ATF prices by 1.4%; commercial LPG price falls by ₹51.50

Aviation turbine fuel (ATF) prices were cut by 1.4 per cent on Monday, while commercial LPG cylinders became cheaper by Rs 51.50, reflecting a drop in global benchmark rates.

Jet fuel (ATF) price was reduced by Rs 1,308.41 per kilolitre, or 1.4 per cent, to Rs 90,713.52 per kl in the national capital -- home to one of the busiest airports in the country, according to state-owned fuel retailers.

The reduction comes after two back-to-back monthly increases in prices since July 1. In all, prices were hiked by Rs 8,949.38 per kl in line with the spurt in international oil rates that followed geopolitical tensions and trade wars.

This price cut will reduce the burden on commercial airlines, for whom fuel makes up for almost 40 per cent of the operating cost.

No immediate comments could be obtained from the airlines on the impact of the price change.

The ATF price in Mumbai was cut to Rs 84,832.83 per kl from Rs 86,077.14, while those in Chennai and Kolkata were increased to Rs 94,151.96 and Rs 93,886.18 per kl, respectively.

Rates differ from city to city, depending on incidence of local taxes such as VAT.

Alongside, oil firms reduced the price of commercial LPG used in hotels and restaurants by Rs 51.50 per 19-kg cylinder. Commercial LPG now costs Rs 1,580 in the national capital.

This the sixth straight reduction in commercial LPG rates. Prices were last reduced by Rs 33.50 per 19-kg cylinder on August 1.

In the six reductions, prices have been cut by Rs 223 per bottle since April.

While oil prices have been on the boil, benchmark LPG rates have softened because of low demand during summer months.

Prices of ATF and LPG differ from state to state, depending on the incidence of local taxes, including VAT.

The rate of cooking gas used in domestic households, however, remained unchanged at Rs 853 per 14.2-kg cylinder. The price of the domestic LPG was hiked by Rs 50 per cylinder in April.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revised prices of ATF and cooking gas on the first of every month based on the average price of benchmark international fuel and foreign exchange rate.

Domestic rates of petrol and diesel continue to remain frozen. Rates were cut by Rs 2 per litre in mid-March last year, ahead of the general elections. Petrol costs Rs 94.72 a litre in Delhi, while diesel is priced at Rs 87.62.