Home Commercial trading Jet fuel prices reduced by 1.3%, commercial LPG rate reduced by Rs 135

Jet fuel prices reduced by 1.3%, commercial LPG rate reduced by Rs 135

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On Wednesday, jet fuel prices were slashed 1.3% – the first reduction after 10 rounds of price increases – due to lower international crude oil rates.

Simultaneously, prices for commercial LPG – used by commercial establishments such as hotels and restaurants – have been reduced by Rs 135 per 19kg cylinder.

The price of aviation jet fuel (ATF) – the fuel that helps planes fly – has been reduced by Rs 1,563.97 per kilolitre, or 1.27%, to Rs 1,21,475.74 per kl (Rs 121 per liter) in the nation’s capital, according to a price notification from state-owned fuel retailers.

This is the first cut after 10 rounds of price increases this year. Fares were increased by 6,188.25 rupees per kl, or 5.29%, on May 16, to a record high of 1,23,039.71 rupees per kl.

Commercial LPG tariffs have been reduced to Rs 2,219 per 19kg cylinder from Rs 2,354, according to the notification.

Prior to the reduction, commercial LPG tariffs had increased by 355.5 rupees per cylinder this year.

However, prices for LPG cooking gas used in households remained unchanged at Rs 1,003 per 14.2 kg cylinder. The rates had been increased by Rs 3.50 per cylinder on May 19. Previously, prices were increased by Rs 50 per cylinder on March 22 and again by the same amount on May 7.

Since April 2021, domestic LPG prices have increased by Rs 193.5 per cylinder.

Meanwhile, petrol and diesel prices remained unchanged at Rs 96.72 per liter and Rs 89.62 per liter respectively. A reduction in excise duty by the government had reduced petrol by Rs 8.69 per liter and diesel by Rs 7.05 per liter on May 22, but for this the base price has remained unchanged since April 6. Before that, prices had risen by a record high. Rs 10 per liter each.

The retail price of petrol, diesel and domestic cooking gas was well below cost and therefore lower benchmark prices are being used to offset these losses.

Kerosene prices are reviewed on the 1st and 16th of each month, while gasoline and diesel prices are reviewed daily, based on equivalent prices in the international market.

ATF in Mumbai now costs Rs 120,306.99 per kl, while it is priced at Rs 126,369.98 in Kolkata and Rs 125,725.36 in Chennai.

Rates differ from state to state, depending on the incidence of local taxation.

Fuel prices rose in India because global energy prices rose due to supply problems following Russia’s invasion of Ukraine and the return of demand after being hit by the pandemic. India is 85% dependent on imports to meet its oil needs.

While oil prices have fallen from a nearly 14-year high of $140 a barrel, they continue to trade above $100. On Wednesday, Brent – the world’s most widely used benchmark – was trading at $117.07 a barrel.

To make matters worse, the rupee depreciated against the US dollar, making imports more expensive.