ATF Price Cut by 4%, Commercial LPG Rate Reduced - January 2023

New Delhi, Jan 1 (PTI) Jet fuel or ATF price on Monday was cut by 4 per cent, the third straight monthly reduction, and commercial cooking gas (LPG) rates were marginally lowered by Rs 1.50 per 19-kg cylinder in line with international benchmarks.

However, the price of domestic LPG -- used in household kitchens for cooking purposes -- remained unchanged at Rs 903 per 14.2-kg cylinder.

Aviation turbine fuel (ATF) price was cut by Rs 4,162.5, or 3.9 per cent, in the national capital to Rs 101,993.17 per kl, according to price notifications of state-owned fuel retailers.

This is the third straight monthly reduction in jet fuel prices. ATF price was cut by almost 6 per cent (Rs 6,854.25 per kl) in November and by Rs 5,189.25, or 4.6 per cent, in December.

The three rounds of reduction have wiped away almost 45 per cent of the Rs 29,391.08 per kl increase in rates effected in four monthly tranches starting July 1.

The reduction in the price of jet fuel, which makes up for 40 per cent of an airline's operating cost, will ease the burden on already financially strained airlines.

Alongside, oil firms also reduced the price of commercial LPG - used in various establishments such as hotels and restaurants - by Rs 1.50.

A 19-kg commercial LPG cylinder will now cost Rs 1,755.50 in the national capital and Rs 1,708.50 in Mumbai.

The price hike follows a Rs 39.5 per cylinder reduction in rates effected on December 22.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st of every month, based on the average international price in the previous month. The revision on December 22 was an outlier.

Petrol and diesel prices continued to remain on freeze for a record 21st month in a row. Petrol costs Rs 96.72 per litre in the national capital, and diesel costs Rs 89.62 per litre.

State-owned fuel retailers are supposed to revise petrol and diesel prices daily, based on a 15-day rolling average of benchmark international fuel prices, but they haven't done that since April 6, 2022.