Aviation fuel surges ₹16/litre as commercial LPG prices climb sharply

Aviation turbine fuel prices spiked by ₹16 per litre effective Thursday, marking a significant increase for domestic carriers already grappling with elevated operational costs. The fuel price has climbed to ₹137 per litre from ₹121 previously, according to state-owned oil companies including Indian Oil Corporation.

This latest revision follows a series of consecutive hikes in recent months. ATF prices were raised by ₹6.28 per litre in September and ₹5 per litre in August, underscoring sustained upward pressure on fuel costs. For the aviation sector, the timing is particularly significant as ATF typically accounts for approximately 40 per cent of an airline's operating expenses, making fuel price movements a critical factor in carrier profitability.

Commercial liquefied petroleum gas (LPG) rates have also climbed sharply, rising ₹62.50 per 19-kilogramme cylinder. This represents a reversal of recent relief, as commercial LPG prices had declined in both August and July before the September increase of ₹9.50 per cylinder.

The dual increases reflect broader movements in international energy markets. Commercial LPG rates had reached record highs in June amid global supply disruptions before moderating in the following months. The latest adjustments suggest stabilisation or renewed strength in global crude oil and refined product prices, with Indian state-owned energy companies passing through the changes to domestic consumers.