Oil firms slash commercial LPG, jet fuel prices
In a welcome relief for businesses, public sector oil companies have reduced the price of commercial LPG cylinders by ₹14.50.
In a welcome relief for businesses, public sector oil companies have reduced the price of commercial LPG cylinders by ₹14.50. The new price for a 19-kg cylinder has been adjusted accordingly, benefiting restaurants, hotels, and other commercial users.
Table of Contents
Jet Fuel Prices Drop by 4.4%
Aviation Turbine Fuel (ATF), which accounts for about 30% of airlines’ operational costs, has also seen a significant cut. The new rate is ₹85,486.80 per kilolitre (kl), a reduction of ₹3,954.38 per kl. This move is expected to provide much-needed relief to Indian carriers like Air India and IndiGo.
Also Read: Mega Sale Begins on Amazon and Flipkart: Huge Offers on Smartphones, ACs, and More
Back-to-Back Reductions in April
This latest price drop follows a 6.15% (₹5,870.54 per kl) reduction in ATF on April 1. Combined, these cuts have neutralized previous price hikes earlier in the year, making fuel more affordable across the board.
Global Oil Prices Hit a Four-Year Low
The cuts are a direct result of falling global crude oil prices. Brent crude is currently hovering around $63 per barrel—the lowest since April 2021. The dip is attributed to decreased demand amid a global economic slowdown and Saudi Arabia’s indication that it will not further reduce supply.
Positive Impact on Indian Economy
India imports nearly 85% of its crude oil needs. The decline in prices is expected to reduce the national import bill, narrow the current account deficit (CAD), and strengthen the rupee. This is a significant boost to the Indian economy, particularly in managing inflation.
Domestic Fuel Prices and Inflation Outlook
Falling crude prices also pave the way for lower petrol, diesel, and jet fuel prices, which helps contain inflation domestically. These changes benefit consumers and businesses alike.
Excise Duty Increase Offset by OMCs
Last month, the Indian government raised excise duties on petrol and diesel. However, Minister for Petroleum and Natural Gas Hardeep Singh Puri confirmed that state-run oil marketing companies—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—will absorb these costs. Thanks to the global decline in crude oil prices, these companies are in a better position to manage the increased tax burden.
