India Hikes LPG Cylinders and Jet Fuel Prices Amid Middle East Crisis

State-owned oil marketing companies have increased prices of commercial LPG cylinders and aviation turbine fuel (ATF) in India. The price of a 19-kg commercial LPG cylinder has been hiked by Rs 9.50, taking the new rate to an undisclosed amount. ATF prices for domestic airlines have risen 5.46 per cent or Rs 6.28 per litre.

On Tuesday, the ATF price was increased from Rs 115 per litre to Rs 121.28 per litre, marking the second consecutive monthly hike in prices. The latest increase comes after a Rs 5 per litre rise in August and a similar cut in July. Jet fuel accounts for around 35-40 per cent of an airline's overall operating expenditure in India.

Mahanagar Gas Ltd has also increased CNG and domestic PNG prices in Mumbai by Rs 2 per kg and Rs 1 per standard cubic metre (SCM), respectively, due to a sharp rise in input gas prices linked to international indices amid the ongoing crisis in the Middle East. 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.