Rising ATF and LPG Prices: The Impact on Airlines and Restaurants

In a move reflecting global fuel price benchmarks, state-owned oil companies have increased Aviation Turbine Fuel (ATF) prices by over 3%, alongside a rise in commercial LPG rates by Rs 15.50 per cylinder.

The ATF price adjustment, a 3.3% rise to Rs 93,766.02 per kilolitre in the national capital, reverses a prior 1.4% reduction. This change imposes an additional financial burden on commercial airlines, where fuel accounts for nearly 40% of operating costs.

Commercial LPG, now priced at Rs 1,595.50 in Delhi, follows a series of reductions since April due to geopolitical shifts affecting oil prices. Differences in prices across cities stem from varying local tax applications.