New Delhi, September 1: Consumers and businesses face higher energy costs from Tuesday as state-owned oil marketing companies raised the price of 19-kg commercial LPG cylinders by Rs 9.50, while aviation turbine fuel (ATF) for domestic airlines became 5.46 per cent costlier. The latest fuel revisions could increase operating expenses for airlines and commercial establishments, while separate gas price increases have added to household and transport costs in Mumbai.
ATF prices have risen by Rs 6.28 per litre, from Rs 115 to Rs 121.28, marking the second successive monthly increase. The fuel had already become Rs 5 per litre costlier in August after prices were reduced by the same amount in July.
Jet fuel represents about 35-40 per cent of an airline’s overall operating expenditure in India, making changes in ATF prices a significant cost factor for domestic carriers. The latest increase is expected to raise airlines’ fuel expenditure and could put pressure on airfares. However, ticket prices also depend on passenger demand, competition and available network capacity.
In Mumbai, Mahanagar Gas Ltd (MGL) has separately increased prices of compressed natural gas (CNG) and domestic piped natural gas (PNG), citing a sharp increase in input gas costs linked to international indices amid the ongoing crisis in the Middle East.
CNG prices have gone up by Rs 2 per kg to Rs 88 in Mumbai, while domestic PNG prices have increased by Rs 1 per standard cubic metre (SCM). The revised rates took effect on September 1.
MGL said the continuing crisis in the Middle East had significantly increased input gas prices linked to international indices, prompting the revision in CNG prices.
The commercial LPG increase comes after the government last week set maximum cooking gas production targets for individual public- and private-sector refineries and upstream companies.
In an order issued earlier in August, the Petroleum and Natural Gas Ministry prescribed maximum LPG production levels for 21 refineries and upstream companies. Their combined production potential was fixed at 63,810 tonnes a day.
The latest revisions come against the backdrop of changes in domestic fuel and gas costs, with LPG, ATF, CNG and PNG prices all seeing increases from September 1.
