New Delhi: Soaring fuel prices in India are all set to fall soon as oil marketing companies (OMCs) on Wednesday started reducing prices for commercial LPG and jet fuel or aviation turbine fuel (ATF) for domestic carriers due to significant improvements of supply side, while domestic LPG rates remained unchanged amid easing West Asia conflict.
With the reduction of both commercial LPG and ATF prices, it is expected that food bills across all eating joints and air travels in the country are set to be cheaper in the coming days. Providing a big relief to small business houses like restaurants, hotels and others alike, OMCs have significantly cut the price of 19-kg commercial LPG cylinders, by Rs 183.50, effective from Wednesday.
After the reduction, now the retail price of LPG in Delhi stands at Rs 2,930 per cylinder. Besides, OMCs have also lowered the price of the 5-kg free trade LPG (FTL) cylinder by Rs 13. Following the revision, the retail price of a 5-kg FTL cylinder in Delhi now stands at Rs 808.50. Similarly, the ATF prices for domestic carriers have been slashed by Rs 5 per litre to Rs 110 per litre from Rs 115 per litre, industry sources said on Wednesday.
As far as the commercial LPG prices are concerned, this marks the first price cut for 19-kg cylinders this year, while the prices for domestic 14.2-kg LPG cylinders were left unchanged at Rs 942. The price drop is attributed to easing global crude oil prices following a ceasefire extension between the US and Iran, impacting key shipping routes.
For jet fuel prices, the government introduced an ATF price stabilisation scheme last month, under which participating airlines could buy jet fuel at a fixed price of Rs 115 per litre for up to three years. Airlines that do not opt for the scheme continue to pay prevailing market rates.
Under the mechanism, if benchmark ATF prices rise above the base rate of Rs 86.32 per litre which is equivalent to a retail price of Rs 115 per litre after airport charges, oil company margins and applicable taxes, the government will provide interest-free advances to oil marketing companies to bridge the difference.
Meanwhile, the sources also said that India’s largest private fuel retailer, Nayara Energy on Wednesday also announced a significant reduction in petrol and diesel prices across its network of more than 7,000 fuel stations in the country. “Petrol prices have been cut by Rs 5 per litre and diesel by Rs 3 per litre across its nationwide retail network, becoming the first fuel retailer in more than two years to reduce pump prices as easing tensions in the Middle East pushed international crude oil prices lower,” the source said.
The move follows a decline in global crude prices after concerns over supply disruptions eased with the de-escalation of hostilities in West Asia and the reopening of a key maritime route. Nayara had been among the first retailers to raise fuel prices after the outbreak of the Iran conflict. On March 26, it increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre.
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