Jet fuel, commercial cooking gas to cost more

NEW DELHI :Flight tickets may rise further as oil marketing companies (OMC) have raised the prices of aviation turbine fuel (ATF) by around 5% across the four metro cities.

In the national capital, jet fuel now costs ₹118,199.17 per kilolitre (kl), up 5.14% from ₹112,419.33 last month. Similarly, the price of jet fuel in Kolkata increased 4.65% to ₹126,697.08 per kl.

In the key cities of Mumbai and Chennai, jet fuel is now priced at ₹110,592.31 and ₹122,423.92 per kl, according to data from the OMCs.

This increase in ATF prices may lead to a rise in airline tickets as the country has entered the festival season during which domestic travel increases. ATF price comprises 40% of the ticket price. This is the fourth consecutive increase in jet fuel prices.

An S&P Global Commodity Insights report in August said air travel measured by flights, returned to the pre-pandemic level in India but jet fuel demand is still expected to remain below the 2019 level in 2023, due to a slower rebound in long-haul travel and the distressed airline industry.

Further, OMCs have increased the price of commercial LPG cylinders by over ₹200 across the country.

In the national capital, the 19-kg commercial LPG is sold for ₹1,731.50, higher by ₹209 from the price last month. Similarly, post the price hike, commercial cooking gas cylinders in Kolkata, Mumbai and Chennai, would cost ₹1,839.50, ₹ 1,684, ₹ 1,898 per cylinder respectively.

The move to raise commercial cooking gas prices comes at the time the country is witnessing high inflation. In August, although the retail inflation eased, it was above the Reserve Bank of India’s (RBI) upper tolerance limit of 6%. India’s retail inflation eased to 6.83% in August from 7.44% in July as vegetable prices cooled somewhat compared to the previous month, according to data from the National Statistical Office (NSO) data.

Price of the 14.2 kg domestic cooking gas, however, remained unchanged.