The oil firms on Thursday reduced the price of commercial LPG by ₹14.50 per 19-kg cylinder while price of jet fuel, or ATF, was reduced by 4.4 per cent on Thursday.
Additionally, the price of commercial LPG used in hotels and restaurants was lowered by ₹14.50 per cylinder, in line with international benchmarks.
The Aviation Turbine Fuel (ATF) price was reduced by ₹3,954.38 per kilolitre, or 4.4 per cent, to ₹85,486.80 per kl in the national capital – home to one of the busiest airports in the country, according to state-owned fuel retailers.
The price cut follows a steep 6.15 per cent (₹5,870.54 per kl) reduction effected on April 1. These two reductions have effectively offset the price increases that occurred earlier this year.
The reduction follows a ₹41 per cylinder cut in rates effected on April 1.
International oil prices have softened in the last couple of weeks as global trade war eroded the outlook for fuel demand. Brent – the most quoted international benchmark – was trading below USD 61 per barrel – the lowest in over three years.
Prices of ATF and LPG differ from state to state depending on the incidence of local taxes, including VAT.
The rate of cooking gas used in domestic households, however, remained unchanged at ₹853 per 14.2-kg cylinder. The price of the domestic LPG was hiked by ₹50 per cylinder last month.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revise prices of ATF and cooking gas on the first of every month based on the average price of benchmark international fuel and foreign exchange rate.
While international oil prices have softened, domestic rates of petrol and diesel continue to remain frozen. Rates were cut by ₹2 per litre in mid-March last year, ahead of the general elections. Petrol costs ₹94.72 a litre in Delhi, while diesel is priced at ₹87.62.
