Consumers and businesses may have to spend more on fuel from September 1, as several energy prices have increased.
State-owned oil marketing companies have raised the price of 19-kg commercial LPG cylinders by ₹9.50.
At the same time, aviation turbine fuel (ATF), the fuel used by airlines, has become significantly more expensive for domestic carriers.
The latest changes could have an impact on businesses, airlines and even passengers.
ATF Price Rises Again, Airfares Could Face Pressure
The price of ATF has increased by 5.46%, or ₹6.28 per litre, taking it from ₹115 to ₹121.28 per litre.
This is the second consecutive monthly increase in the price of jet fuel.
ATF prices had already gone up by ₹5 per litre in August after being reduced by a similar amount in July.
The increase matters because jet fuel is one of the biggest expenses for airlines. It accounts for around 35% to 40% of an airline’s overall operating costs in India.
Higher fuel costs could put pressure on airfares. However, ticket prices do not depend on fuel costs alone. Passenger demand, competition and the number of available seats also play an important role.
Mumbai CNG and PNG Prices Also Increase
Residents of Mumbai are also facing higher gas prices.
Mahanagar Gas Ltd (MGL) has increased the price of CNG by ₹2 per kg, taking the new price to ₹88 per kg in Mumbai.
The price of domestic PNG has also increased by ₹1 per standard cubic metre (SCM).
The new rates came into effect from September 1.
MGL said the increase was linked to a sharp rise in input gas prices, which have been affected by international prices amid the ongoing crisis in the Middle East.
Why Are Fuel Prices Rising?
The latest LPG price increase comes shortly after the government introduced measures related to domestic LPG production.
Last week, the government fixed maximum cooking gas production targets for individual public- and private-sector refineries and upstream companies.
Earlier in August, the Petroleum and Natural Gas Ministry had specified maximum LPG production levels for 21 refineries and upstream companies.
Together, these companies have a stated production potential of around 63,810 tonnes of LPG per day.
With LPG, ATF and CNG prices all moving higher, the latest changes could increase costs for households, businesses, transport operators and airlines.
