Jet fuel prices more than doubled to ₹2.07 lakh/kl, commercial LPG up ₹195.50

A cook prepares food amid a shortage of commercial LPG cylinders at Fort in Mumbai. File
| Photo Credit: PTI
At the time of writing, state-owned oil marketing company (OMC) IndianOil, notified that price of the 19 kg commercial cylinder rose by ₹195.5 per cylinder, from ₹1,883 per cylinder earlier (March 7) to ₹2,078.5 for each cylinder in Delhi.
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Similarly, Mumbai woke up to a ₹196 hike on each commercial cylinder, Chennai ₹203 and Kolkata ₹218.
As for the jet fuel, prices in Delhi rose more than 2.2 times to ₹2,07,341.22 per kilolitre from ₹91,393. The sharp increase is expected to significantly strain airlines, for whom aviation turbine fuel accounts for nearly 40% of operating costs. It remains to be seen whether carriers will respond by raising airfares or trimming flight schedules.

The Petroleum Ministry has maintained that India has sufficient stocks of aviation turbine fuel. In fact, the government had instituted at ₹29.5 per litre export levy on ATF exports seeking to ensure their availability in the domestic market.
Further, the increase in price of commercial cylinders comes amidst the government increasing allocation of the same by up to 70%, though subject to entities transitioning to piped natural gas (PNG), barring entities as steel and automobiles, among others where piped gas may not serve as an alternative.
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Essential to note, the government informed Tuesday (March 31), that 47,928 MT of commercial LPG has been uplifted by states and union territories since March 14. For perspective, the government had first announced allocating 20% of the average monthly commercial LPG requirement on March 12, thereafter, gradually increasing to 70% as of March 27.
Earlier, Air India CEO Campbell Wilson had cautioned that rising ATF prices could dampen travel demand and potentially force airlines to scale back services
On fuel availability, Civil Aviation Minister Ram Mohan Naidu told the Parliament on Monday (March 30) that India has sufficient ATF stocks to last about 60 days, adding that domestic production is double the domestic demand, with surplus volumes being exported.
Watch | LPG crisis in India: What’s the situation on ground?
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