Aviation turbine fuel (ATF) and commercial LPG prices have been dramatically hiked by state-owned oil marketing corporations (OMCs) in response to the jump in global crude oil prices caused by the crisis in West Asia.
The price of jet fuel has soared to an all-time high, and ATF in Delhi has increased by ₹1,10,703 per kilolitre (114.5%), reaching ₹2,07,341 per kl. This is the first time that prices have surpassed the ₹2 lakh barrier. Prior to this, the highest point occurred in 2022, after the war between Russia and Ukraine had ended.
Airlines are feeling the pinch of rising costs for the second month in a row, following a 5.7% increase in March.
The cost of a 19-kg cylinder in Delhi increased to 2,078.50 ₹ due to an additional ₹195.50 increase in commercial LPG pricing. But the price of household 14.2-kg LPG cylinders has not increased and is still ₹913.
Every month, fuel prices are adjusted in response to changes in currency rates and worldwide benchmarks. The most recent spike is a reflection of the roughly 50% increase in global crude oil prices caused by disruptions in supply.
Oil prices have been very volatile recently, with Brent crude rising to about $105.86/bbl and WTI crude trading above $103/bbl.
There may be an effect on inflation dynamics from the anticipated increase in operational expenses across the airline, hotel, and industrial sectors caused by the dramatic spike in fuel prices.
