Commercial LPG, ATF Prices Slashed; Petrol, Diesel Prices Also Reduced by Nayara Energy

State-run oil marketing companies Wednesday cut the price of commercial LPG cylinders by Rs 183.5 and aviation turbine fuel (ATF) by Rs 5 per litre, as global crude prices eased from the highs seen during the peak of the West Asia conflict and supply concerns abated with reopening of the Strait of Hormuz.

Private fuel retailer Nayara Energy also rolled back the price increases it had introduced during the conflict, reducing petrol prices by Rs 5 per litre and diesel by Rs 3 per litre across its 7,000-odd retail outlets. However, there has been no change in prices of 14.2-kg domestic LPG cylinder, which costs Rs 942 in the Capital, CNG (Rs 83.09 per kg), or petrol (Rs 102.12 per litre) and diesel (Rs 95.2 per litre) sold by state-run Indian Oil, Bharat Petroleum and Hindustan Petroleum.

Domestic LPG, petrol price relief unlikely soon

Both commercial LPG and ATF are deregulated fuels, and their prices are revised on the first of every month in line with international benchmark rates. The prices of domestic LPG cylinder and petrol and diesel are unlikely to come down anytime soon, as oil marketing companies (OMCs) continue to incur losses despite a fall in international crude prices. A senior OMC executive said they were still getting the crude booked at elevated prices during the conflict. The price of a 19-kg commercial LPG cylinder has been reduced by Rs 183.5 to Rs 2,930 in Delhi. This is the first cut in commercial LPG prices since Dec last year, when the rates were reduced by Rs 10 per cylinder. The 5-kg free trade LPG (FTL) cylinder, commonly used by migrant workers, roadside eateries and street vendors, has also become cheaper by Rs 13, and now, costs Rs 808.5. ATF for domestic airlines now costs about Rs 110 per litre. The 19-kg commercial LPG cylinder, widely used by hotels, restaurants and industries, now costs Rs 2,884 in Mumbai, Rs 3,072 in Kolkata and Rs 3,099.5 in Chennai, with prices varying across states due to differences in value-added tax. Commercial LPG prices had risen by a cumulative Rs 1,373 per cylinder in four successive revisions after the conflict broke out. Wednesday's revision is the first reduction since tensions in West Asia eased. Industry insiders said the "minor" reduction in ATF prices was unlikely to dent airfares. While none of the major airlines commented, sources said operating costs would remain high till the larger issue of airspace closures remains unresolved. "Pakistan airspace has been closed for Indian carriers since last April - that is almost 15 months now. All flights operated by Indian carriers between north India, essentially the Delhi mega hub, and destinations west of India - from the Gulf to North America - are affected by longer routes, higher fuel costs and a weaker rupee... If India can play cricket with Pakistan, surely this issue must also find some working ground," a source said.