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Commercial LPG, Jet Fuel Prices Hiked From October 1

State oil companies have raised commercial LPG and aviation turbine fuel prices from October 1, citing firming international benchmarks.

Commercial LPG rates went up by Rs 62.50 per 19-kg cylinder. In Delhi, a commercial cylinder now costs Rs 2,810, up from Rs 2,747.50. It is the third straight monthly ATF hike, after increases of Rs 6.28 in September and Rs 5 in August.

Domestic LPG prices remain unchanged at Rs 942 for a 14.2-kg cylinder in Delhi. Petrol and diesel prices are also unchanged after their revision in May. Rates are revised on the first of every month and vary across states due to local taxes.

The hikes reflect high crude prices and a weak rupee. Brent’s December contract settled near $98 a barrel on September 30, and the rupee is close to 96 per dollar. Fuel makes up to 40 percent of an airline’s operating costs, so the ATF rise could pressure airfares.

Why it matters: the increase lands at the start of the festive season, when restaurants and caterers use more commercial gas. Households get a breather as domestic cylinder rates stay frozen.

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