India Raises LPG, Jet Fuel Prices Amid Middle East Crisis
Oil marketing companies in India have raised prices of commercial LPG cylinders by Rs. 9.50 and jet fuel (ATF) for domestic airlines by 5.46% or Rs. 6.28 per liter, effective from September 1. The ATF price hike is the second consecutive monthly increase, with the price rising from Rs. 115 to Rs. 121.28 per liter.
The ATF accounts for around 35-40% of an airline's overall operating expenditure in India, making prices a key cost for domestic carriers. The latest hike may put pressure on airfares, although ticket prices also depend on passenger demand, competition, and available network capacity.
In addition to the LPG and ATF price hikes, Mahanagar Gas Ltd has increased CNG and domestic PNG prices in Mumbai by Rs. 2 per kg and Rs. 1 per standard cubic meter, respectively, due to a sharp rise in input gas prices linked to international indices amid the ongoing crisis in the Middle East.