Oil Firms Raise ATF and Commercial LPG Prices
New Delhi, October 2, 2023 - In a move that could have widespread implications for both businesses and consumers, oil companies have once again increased the prices of aviation turbine fuel (ATF) and commercial cooking gas. The hike in prices comes as the fourth consecutive monthly adjustment since July, creating a ripple effect in the aviation industry and impacting the cost of fuel for commercial establishments such as restaurants and hotels.
Impact on Business and Households
The most significant increase can be seen in the price of commercial cooking gas, with a substantial ₹209 per 19-kg cylinder. This sudden surge in prices is expected to burden commercial establishments, including hotels and restaurants, which rely on these cylinders for their operations. In major cities like Delhi, Mumbai, and Chennai, a 19-kg cylinder now costs ₹1,731.50, ₹1,684, and ₹1,898, respectively. This move largely negates the ₹157.5 reduction per cylinder made on September 1 and the ₹100 cut on August 1.
What Excluded?
The price of a 14.2-kg domestic LPG cylinder remains unchanged for now, providing some relief to households. Those enrolled in the Pradhan Mantri Ujjwala Yojana (PMUY) continue to enjoy the ₹200 reduction in the price of domestic cylinders, resulting in a total subsidy of ₹400 per 14.2-kg LPG cylinder. The Union Cabinet's approval of approximately 75 lakh new LPG connections under the Prime Minister's Ujjwala Yojana in September indicates a significant commitment to expanding access to affordable LPG across the country.
Latest Update on the News
On the other hand, the revision in ATF rates is poised to impact airfares, particularly as the festive season approaches. Airlines typically allocate around 40% of their ticket prices to fuel costs, making any fluctuation in ATF prices keenly felt by the industry and passengers alike. ATF prices, which are reviewed on the first of every month by state-owned fuel retailers, are adjusted based on the average international prices from the previous month. With the latest increase, ATF prices now stand at ₹1,18,199.17 per kilolitre (kl) in Delhi, ₹1,22,423.92 in Chennai, and ₹1,10,592.31 in Mumbai for domestic airlines.
The recent hikes in ATF prices have been particularly steep, with a record-breaking increase of 14.1% in September, an 8.5% surge in August, and a 1.6% rise in July. With the latest adjustment, the price of jet fuel has surged by a staggering ₹29,391.08 per kilolitre.
Future Consequences...
These price hikes in both commercial LPG and ATF could have far-reaching consequences for various sectors of the economy. Consumers, particularly those planning air travel during the upcoming festive season, may need to brace themselves for higher costs, while businesses, particularly restaurants and hotels, will need to adapt to increased operational expenses.
The energy sector remains a dynamic and ever-evolving landscape, with changes in fuel prices affecting not only individual budgets but also the broader economic landscape.
News Source- THE
HINDU
0 Comments