Travelling by air and dining out may get just a tad more expensive this month as fuel companies raised Aviation Turbine Fuel (ATF) and commercial LPG prices on Wednesday, aligning rates with global market trends.
Jet fuel, the lifeline of airlines, climbed by 3.3 per cent, or Rs 3,052.5 per kilolitre, pushing prices in the national capital to Rs 93,766.02 per kl. This jump comes barely a month after a marginal cut of 1.4 per cent, reported PTI.
For airlines, this is hardly welcome news. Fuel alone accounts for nearly 40 per cent of operational expenses, meaning higher running costs are almost inevitable. Industry insiders have not yet commented, but with margins already under pressure, the skies may become a little stormier for carriers.
In Mumbai, ATF prices rose to Rs 87,714.39 per kl, while Chennai and Kolkata saw fresh rates of Rs 96,816.58 and Rs 97,302.14 per kl, respectively. These differences stem from local taxes such as VAT, which vary across states.
Hotels and Restaurants Also Pay More
Not just airlines, but the hospitality industry is in for higher costs too. Commercial LPG cylinders, widely used by restaurants and hotels, have been hiked by Rs 15.50 each. A 19-kg cylinder in Delhi now costs Rs 1,595.50.
The increase comes after a long streak of cuts. Since April, prices had been slashed by Rs 223 in six tranches, including a Rs 51.50 drop last month. This October revision ends the relief, potentially nudging food bills slightly higher for customers.
What Stays Unchanged
For households, though, there’s no change in the kitchen budget, domestic LPG remains steady at Rs 853 for a 14.2-kg cylinder. The last hike for domestic users came in April, when rates were raised by Rs 50.
Petrol and diesel prices, too, remain frozen. Petrol costs Rs 94.72 per litre in Delhi, while diesel is steady at Rs 87.62 per litre. Interestingly, these rates have stayed unchanged since a Rs 2 per litre cut in March 2024, ahead of the general elections.
Why the Hike Now?
According to state-run oil firms, IOC, BPCL, and HPCL, fuel prices are revised every month based on international benchmarks and currency fluctuations. Recent firming of global oil, particularly due to geopolitical tensions, left companies with little choice but to pass on the costs.
For now, airlines may grapple with tighter margins, restaurants with higher kitchen bills, and travellers and foodies may need to brace themselves for subtle price hikes.
