Domestic oil companies raised Aviation turbine fuel (ATF) prices by a steep Rs 16 per litre from Thursday, October 1. The increment was likely due to a sharp uptick in crude prices in the last 10 days of September.  ATF prices were increased to Rs 137 per litre from Rs 121 for domestic airlines, refelcting a jump of 13.22 per cent. Moreover, according to public sector oil companies, the price of commercial LPG has increased by Rs 62.50 per 19 kg cylinder, in line with the improvement in international benchmark prices.

ATF Prices Revised For Third Time Since August 

The latest review, which took place on October 1, is the third since August 2016. Earlier, after a hike of Rs 5 per litre in August, jet fuel (ATF) prices were hiked by Rs 6.28 per litre, or 5.46 per cent, in September.

ATF accounts for up to 40 per cent of airlines' operating costs. A revision in ATF impacts the cost drastically for air carriers.

Will It Impact Flight Ticket Prices? 

The uptick in ATF prices would definitely hit airlines' operational costs in the festive season. However, whether they pass on the higher cost to the passengers or will they bear it is not clear, as none of the domestic airlines has made any announcements.  With the current status, Airlines are likely not intended to levy an additional surcharge on passengers. 

Why ATF Prices Were Increased? 

The latest changes have been made in view of the recent fluctuations in international benchmark oil prices and the rupee-dollar exchange rate. It is to be noted that the prices of Jet Fuel (ATF) and Liquefied Petroleum Gas (LPG) are reviewed on the first day of every month, and their prices may vary between states due to local taxes like VAT.

However, the prices of petrol and diesel remained unchanged, providing significant relief to consumers. The prices were increased by about Rs 7.50 per litre in May. 

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LPG Price Hike 

Commercial LPG prices saw a hike of Rs 62.59 per 19-kg cylinder. Earlier, in September, LPG prices were raised by Rs 9.50 per 19-kg cylinder, followed by two consecutive monthly reductions of Rs 192 in August and Rs 183.50 in July.  

Commercial LPG prices have come down after hitting a record high in June due to disruptions in global fuel supplies and rising international prices.

The price of domestic LPG, used by households, remained stable at Rs 942 per 14.2 kg cylinder. Domestic cooking gas prices rose by Rs 89 per cylinder between March and June, amid supply disruptions and rising international fuel prices due to the Middle East crisis.

Commercial LPG prices rose by Rs 1,373 per 19 kg cylinder between February and June, from Rs 1,740.50 to Rs 3,113.50. Prices then declined in July and August.

(With inputs from the agency)