India hikes commercial LPG, jet fuel prices amid global oil surge

India today (1 April) increased the prices of commercial LPG and jet fuel on the back of a surge in global oil prices linked to the West Asia conflict.

The price of a 19-kg commercial LPG cylinder has been hiked by Rs 195.50, and it now costs Rs 2,078.50 in Delhi, according to state-owned oil companies.

This is the second time that rates of commercial LPG, which are used mostly by restaurants, roadside dhabas and small hotels, were hiked in a month. The last increase came on 1 March when it went up by Rs 114.5 per 19-kg cylinder.

The price of Aviation Turbine Fuel (ATF) was more than doubled to a record Rs 2.07 lakh per kilolitre, but for domestic airlines, the increase would only be 8.5 per cent.

Domestic airlines will pay half of what other carriers, such as non-scheduled, ad hoc and charter, would pay. For them, the prices have gone up by Rs 110,703.08 per kl, or 114.5 per cent, to Rs 207,341.22 per kl.

Jet fuel prices were deregulated more than two decades back and since then, the rates are aligned with benchmark international prices, as per a written understanding with the airlines.

The Ministry of Petroleum and Natural Gas said in a statement today (1 April) that "due to the closure of the Strait of Hormuz and the extraordinary situation in global energy markets, the price of ATF for domestic markets was expected to increase by more than 100% today."  

It said that in order to insulate the domestic travel costs from the substantial increase in international prices, the oil marketing companies of the Ministry of Petroleum, in consultation with the Ministry of Civil Aviation, have passed only a partial and staggered increase of 25% (only Rs. 15/litre) to the airlines.

However, foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world," it added.