ATF price cut by steep 7%; commercial LPG rate up Rs 111 per cylinder

State-owned oil marketing companies cut aviation turbine fuel prices sharply on Thursday while raising the cost of commercial LPG cylinders, implementing their monthly revisions in line with international benchmarks and currency movements.

- OUR CORRESPONDENT

The price of aviation turbine fuel, or ATF, was reduced by 7.3 per cent, offering relief to airlines after three consecutive monthly increases. In Delhi, ATF was cut by Rs 7,353.75 per kilolitre to Rs 92,323.02 per kl, according to state-run fuel retailers. The rate in Mumbai was revised to Rs 86,352.19 per kl, while Chennai and Kolkata saw prices fall to Rs 95,770 and Rs 95,378.02 per kl respectively. Fuel prices differ across cities because of local taxes.

This reduction follows a series of hikes beginning October 1, including a 3.3 per cent increase in October, about 1 per cent in November and a sharper 5.4 per cent rise, or Rs 5,133.75 per kl, on December 1. The latest cut offsets more than two-thirds of the cumulative increase since October.

Aviation fuel accounts for nearly 40 per cent of airline operating costs, and the rollback is expected to ease cost pressures, though airlines did not offer immediate comments.