Indian Oil Corporation Ltd. (IOCL) has raised the price of Aviation Turbine Fuel (ATF) by ₹5 per litre, effective August 1. For domestic airlines, the price of ATF has increased from ₹110 per litre to ₹115 per litre. This latest hike follows a ₹5 cut in July, bringing ATF prices back to pre-July levels for domestic aviation. The revised ATF rates are limited to domestic aviation, with carriers flying international sectors continuing to buy jet fuel under the established global pricing model. As per recent reports, a higher ATF price does not automatically mean increased airfares, as airlines may choose to absorb the additional fuel expense or revise fares later if costs persist, as airfares depend on multiple factors including passenger demand, competition, route capacity and seasonal travel patterns.
Jet fuel reportedly constitutes between 35% and 40% of an airline's overall operational expenditure in India. Following this hike, there is a possibility of an increase in airfares, as the price increase will raise fuel costs for domestic airline companies. While fluctuations in fuel prices can influence airline spending, fares are also driven by demand, competition and network capacity. Aviation turbine fuel is one of the largest operating expenses for airlines, and changes in ATF prices can influence airline operating costs, although fares depend on several factors including demand, competition and capacity. The latest revision illustrates how the same energy market can produce contrasting outcomes—lower costs for commercial kitchens on one hand and higher operating expenses for airlines on the other.
IOCL has announced a reduction in commercial LPG cylinder prices effective August 1. The retail price of a 19-kg commercial LPG cylinder has been brought down by ₹192, taking it to ₹2,738 from the previous ₹2,930. In Kolkata, the revised price stands at ₹2,872.50. A 5-kg Free Trade LPG (FTL) commercial refill has also become cheaper by ₹46.50 and is now available at ₹762. This marks the second consecutive monthly decline in commercial LPG prices after a ₹183.50 reduction implemented on July 1. The latest commercial LPG price cut provides relief to businesses such as restaurants, hotels, caterers and other commercial establishments that rely heavily on LPG for daily operations. The back-to-back reductions come after commercial LPG prices had risen sharply in recent months as global energy markets reacted to geopolitical tensions in West Asia.
Unlike commercial users, households will not see any change in cooking gas prices this month. The price of a 14.2-kg domestic LPG cylinder remains unchanged, with consumers continuing to pay the existing rate. In Delhi, the household cylinder continues to cost ₹942. The unchanged domestic price means the latest revision is targeted primarily at commercial consumers rather than households. LPG prices had surged earlier this year as the West Asia conflict triggered a rise in international energy markets. In contrast to the ATF adjustment, the latest LPG price reduction benefits restaurants, hotels, caterers and other businesses that rely on commercial gas supplies, while providing no relief to household consumers.
