State-run oil marketing companies (OMCs) on Tuesday reduced the price of Aviation Turbine Fuel (ATF) by 6 per cent to Rs 87,597 from Rs 93,480.22 kilolitre in Delhi, the lowest price since April, and increased the cost of commercial LPG by Rs 48.5 per cylinder.
In September, jet fuel prices in Delhi were reduced by 4.6 per cent, reducing the cost to Rs 93,480.22 per kiloliter, as reported by state fuel retailers. This came after two consecutive price hikes in August. Before this there was a larger 6.5 per cent drop in June.
In Kolkata, the new price has been fixed at Rs 90,610.8 per kilolitre, while it is set at Rs 81,866.13 in Mumbai, and Rs 90,964.43 per kg in Chennai.
Aviation stocks reacted positively to the announcement, with shares of Interglobe Aviation (IndiGo) increasing 2.37 per cent on Tuesday to Rs 4,901 per share. Spicejet shares rose 6.9 per cent to Rs 68.13 per share in intraday trade.
ATF and natural gas are currently exempted from goods and services tax (GST) and are taxed at the state level, including excise duty and value-added tax (VAT). Airlines had asked the government during the Budget 2024 to include ATF prices under GST as it would simplify the tax structure and potentially reduce the overall burden on airlines and oil and gas companies.
Meanwhile, the price of 19-kg commercial LPG cylinders has been raised by OMCs by Rs 48.5 per unit. From Wednesday, commercial LPG cylinders in Delhi will retail at Rs 1,740 per unit in Delhi, up from Rs 1,691.50 in September, while it will be priced at Rs 1,692.50 in Mumbai, up from Rs 1,644.
The latest increase represents the third-consecutive rise in monthly prices of commercial LPG cylinders. However, the prices still remain higher than they were in May. Prices of the 5-kg free trade LPG cylinders have also been hiked by Rs 12.
However, no changes have been made in the prices of domestic LPG cylinders, which last saw price cut by Rs 100 in March. About 90 per cent of LPG was consumed by households, 8 per cent by industrial users and 2 per cent by vehicles in 2022.
Similarly, the OMCs have also not announced a cut in the retail prices of petrol and diesel, despite increasing calls to pass on the benefit of lower global crude prices to consumers. Brent Last Day Financial prices fell to a low of $70.04 per barrel on Tuesday amid concerns of oversupply in the global market.
First Published: Oct 01 2024 | 8:22 PM IST
