The price of aviation turbine fuel (ATF) was increased by 5 percent, marking the fourth consecutive monthly increase since July. In addition, the rates for commercial cooking gas (LPG) also saw a significant hike of Rs 209 per 19-kg cylinder, in alignment with the rising international benchmarks. However, the cost of domestic LPG, primarily used for household cooking, remained unchanged at Rs 903 per 14.2-kg cylinder.
Oil companies decided to raise the price of commercial LPG, which is used in establishments like hotels and restaurants, by Rs 209. This means that a 19-kg commercial LPG cylinder now costs Rs 1,731.50 in New Delhi and Rs 1,684 in Mumbai.
This increase effectively reverses most of the previous cuts in commercial LPG prices, which amounted to Rs 157.5 per cylinder and were implemented on September 1, and the Rs 100 cut made on August 1. The Saudi contract price (CP), which serves as the benchmark for LPG pricing, has been on the rise due to increasing concerns over the oversupply in crude oil, which has led to higher prices.
Local shopkeepers, particularly those running tea, samosa, and kachori shops, are anxious about the inflation and the impact of this price hike on their businesses. They are requesting government intervention to control inflation. These businesses are worried that the recent increase of Rs 209 in commercial LPG cylinder prices will exacerbate their problems and lead to rising food costs. Oil companies had previously lowered domestic LPG rates by Rs 200 per 14.2-kg cylinder on August 30 but did not make any changes to the 14.2-kg cylinders this time. This hike in aviation turbine fuel (ATF) prices follows a 14.1 percent increase on September 1 (Rs 13,911.07 per kiloliter) and an 8.5 percent or Rs 7,728.38 per kiloliter increase on August 1.
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