Indian Oil Companies Cut Aviation Turbine Fuel (ATF) Prices by 4.6%
Oil Market Trends and Price Adjustments
Indian oil companies have recently announced a 4.6% reduction in Aviation Turbine Fuel (ATF) prices, bringing it to ₹106,155.67 per kilolitre. This adjustment is in line with the global oil market trends and Saudi Contract Price (CP) and is effective immediately. Alongside this, there has been a ₹21 hike in commercial Liquefied Petroleum Gas (LPG) prices, while domestic LPG rates remain unchanged at ₹903 for a 14.2kg cylinder in Delhi.
Monthly Pricing Update
The adjustment in ATF prices is part of the monthly pricing update by Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL). This practice mirrors the fluctuations in the international oil market and is aligned with the Saudi CP. Notably, this comes after a series of incremental increases in ATF rates observed from July through October.
Stability in Petrol and Diesel Prices
While ATF prices have seen fluctuations, petrol and diesel prices have remained stable since the last adjustment in May, following the excise duty cut in April. Both fuels are currently priced at ₹96.72 and ₹89.62 per litre, respectively, indicating a period of relative steadiness in the domestic fuel market.
Significance for Industries
The adjustments in fuel prices hold significant implications for industries reliant on transportation fuels, such as aviation, where ATF costs constitute a substantial portion of operational expenses. The reduction in ATF prices could provide some relief for airlines, which have been facing pressure from rising fuel costs over the past several months.
Impact on Commercial and Household Sectors
Changes in LPG prices also have implications for both commercial and household sectors. While households will not see a change in their LPG expenses this month, businesses using commercial LPG will need to adjust to the slight increase in costs.
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