India's Oil Prices Soar as LPG Cylinders and Jet Fuel Hike
India's state-owned oil marketing companies (OMCs) have increased prices for commercial LPG cylinders and aviation turbine fuel (ATF). As of September 1, the price of a 19-kg LPG cylinder has risen by Rs 9.50, while ATF rates for domestic airlines have gone up by 5.46% to Rs 121.28 per litre.
This is the second consecutive monthly increase in ATF prices, which account for around 35-40% of an airline's operating expenditure in India. The higher fuel costs are expected to put pressure on airfares, although ticket prices also depend on passenger demand, competition, and available network capacity.
Separately, Mahanagar Gas Ltd (MGL) has raised CNG and domestic PNG prices in Mumbai due to a sharp rise in input gas prices linked to international indices amid the ongoing crisis in the Middle East. The new rates are effective from September 1.