Commercial LPG cylinder prices rise by ₹9.50, jet fuel rates hiked 5.46%

State-owned oil marketing companies (OMCs) have hiked the prices of 19-kg commercial LPG cylinders by ₹9.50, while aviation turbine fuel (ATF) prices for domestic airlines have risen 5.46 per cent or ₹6.28 per litre, effective from Tuesday.

The price of ATF has been raised from ₹115 per litre to ₹121.28 per litre which is the second consecutive monthly increase.

In addition, ATF prices had been increased by ₹5 per litre earlier in August after being cut by a similar amount in July.

Moreover, jet fuel accounts for around 35-40 per cent of an airline's overall operating expenditure in India, making ATF prices a key cost for domestic carriers.

The latest hike is expected to increase fuel costs for domestic airlines and could put pressure on airfares, although ticket prices also depend on passenger demand, competition and available network capacity.

Separately, Mahanagar Gas Ltd (MGL) has increased CNG and domestic PNG prices in Mumbai citing a sharp rise in input gas prices linked to international indices amid the ongoing crisis in the Middle East.

CNG prices have been raised by ₹2 per kg to ₹88 in Mumbai while domestic PNG prices have increased by ₹1 per standard cubic metre (SCM) with the new rates effective from September 1.

"In view of the ongoing crisis in the Middle East, which has resulted in a significant increase in input gas prices linked to international indices, MGL has announced a revision in the prices of CNG," the PSU company said in a statement.

The LPG price hike comes after the government last week fixed maximum cooking gas production targets for individual public- and private-sector refineries and upstream companies.

Earlier in August -- in an order -- the Petroleum and Natural Gas Ministry specified maximum LPG production levels for 21 refineries and upstream companies, with combined production potential set at 63,810 tonnes a day.

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