ATF Prices Slashed by 7% While Commercial LPG Becomes Costlier From January

Aviation turbine fuel (ATF) prices witnessed a sharp reduction at the start of the new year, while commercial liquefied petroleum gas (LPG) prices moved in the opposite direction, increasing significantly across major cities.

ATF prices were cut by over 7% as part of the monthly fuel price revision, bringing relief to the aviation sector where fuel expenses form a major share of operational costs. In the national capital, ATF rates declined by more than ₹7,300 per kilolitre, lowering the price to just over ₹92,000 per kilolitre. Similar reductions were recorded in other metro cities, including Mumbai, Chennai, and Kolkata, though final prices varied due to differences in local taxation.

This reduction follows three consecutive monthly increases since October and effectively offsets a large portion of the cumulative hike seen during the last quarter of the previous year. The move is expected to ease cost pressures on airlines at a time when passenger demand remains strong and operational margins continue to be closely monitored.

In contrast, the price of commercial LPG cylinders used by hotels, restaurants, and other businesses was raised sharply. A 19-kg commercial LPG cylinder now costs ₹111 more in the capital, pushing rates to their highest level in several months. The increase comes after two consecutive monthly reductions and reflects tightening conditions in the global LPG market during the winter season.

Domestic LPG prices used for household cooking, however, were left unchanged, providing stability for consumers amid broader inflationary concerns. Fuel price revisions are carried out on a monthly basis by major oil marketing companies  including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, based on international energy benchmarks and currency movements . While global crude prices have shown signs of moderation in recent weeks, increased winter demand has kept LPG prices firm worldwide. Meanwhile, retail petrol and diesel prices have remained unchanged, continuing a freeze that has been in place since last year.