Commercial LPG, jet fuel and CNG prices increased

State-owned oil marketing companies have increased the price of a 19-kg commercial LPG cylinder by Rs 9.50, while aviation turbine fuel (ATF) supplied to domestic airlines has become 5.46 per cent more expensive from Tuesday.

ATF prices have risen by Rs 6.28 per litre, from Rs 115 to Rs 121.28 per litre, marking the second consecutive monthly increase. Jet fuel rates were raised by Rs 5 per litre in August after a reduction of the same amount in July.

The latest revision is likely to increase operating costs for domestic airlines as fuel accounts for around 35–40 per cent of their total expenditure in India. The increase could also place pressure on airfares, although ticket prices are determined by factors such as passenger demand, competition and the capacity available across airline networks.

Separately, Mahanagar Gas Ltd (MGL) has raised the prices of compressed natural gas (CNG) and domestic piped natural gas (PNG) in Mumbai, citing a sharp increase in input costs linked to international gas indices amid the continuing crisis in the Middle East.

CNG has become costlier by Rs 2 per kg and will now be priced at Rs 88 per kg in Mumbai. Domestic PNG rates have increased by Rs 1 per standard cubic metre. Both revisions took effect on 1 September.

“In view of the ongoing crisis in the Middle East, which has resulted in a significant increase in input gas prices linked to international indices, MGL has announced a revision in the prices of CNG,” the company said in a statement.

The increase in commercial LPG prices comes days after the government prescribed maximum cooking-gas production targets for individual public- and private-sector refineries and upstream companies.

In an order issued in August, the Ministry of Petroleum and Natural Gas specified maximum LPG production levels for 21 refineries and upstream companies. Their combined production potential was fixed at 63,810 tonnes a day.

With IANS inputs