Representational file image.
| Photo Credit: E. LAKSHMINARAYANAN

The price of jet fuel or aviation turbine fuel (ATF) was on Sunday (September 1, 2024) reduced by 4.6%, while the rate of commercial LPG used in hotels and restaurants, was hiked by ₹39 per 19-kg cylinder in the monthly revision done in line with international oil price trends.

The ATF price was cut by ₹4,495.5 per kilolitre or 4.58%, to ₹93,480.22 per kl in the national capital, according to state-owned fuel retailers.

The price reduction will help ease the burden on airlines for whom fuel makes up almost 40% of the operating cost.

The reduction follows two rounds of monthly price increases. Jet fuel prices were on August 1 raised by 2% or ₹1,827.34 per kl and by 1.2% (₹1,179.37 per kl). These hikes followed a steep 6.5% (₹6,673.87 per kl) reduction effected on June 1.

The ATF rate in Mumbai was reduced to ₹87,432.78 per kl on Sunday from ₹91,650.34 previously.

Prices differ from State to State depending on the incidence of local taxes.

Alongside, oil firms increased the price of commercial LPG by ₹39 to ₹1,691.50 per 19 kg cylinder.

This is the second straight monthly increase. Prices were hiked by ₹6.5 per cylinder on August 1. The two rounds of increase follow four monthly price reductions. In four price reductions, rates were cut by ₹148 per 19-kg cylinder.

Commercial LPG now costs ₹1,644 per 19-kg cylinder in Mumbai, ₹1,802.50 in Kolkata and ₹1,855 in Chennai.

Domestic LPG unchanged

Rate of cooking gas used in domestic households, however, remained unchanged at ₹803 per 14.2-kg cylinder.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revise prices of ATF and cooking gas on the first of every month based on the average price of benchmark international fuel and foreign exchange rate.

Prices of petrol and diesel continue to remain frozen. Rates had been cut ₹2 per litre in mid-March. Petrol costs ₹94.72 a litre in Delhi while diesel is priced at ₹87.62.

Petrol sales dropped to 1.17 million tonnes during the first half of October from 1.29 million tonnes a year earlier.
| Photo Credit: Manvender Vashist

Petrol and diesel sales fell in the first half of October ahead of the start of the festival season that is expected to boost consumption, preliminary data of state-owned firms showed.

Last year, Durga Puja/Dussehra as well as Diwali fell in October. This year the festival season, when consumption picks up, starts in the second half of October.

Petrol sales by three state-owned fuel retailers fell 9% year-on-year, the first drop in two months. Diesel consumption dropped 3.2%.

The decline was largely because of the larger base of last year.

Petrol sales dropped to 1.17 million tonnes during the first half of October from 1.29 million tonnes a year earlier.

Sales dropped 9% month-on-month as well.

Consumption of diesel, the most consumed fuel in the country — accounting for about two-fifths of the demand, dropped to 2.99 million tonnes during October 1 to 15 from 3.09 million tonnes a year back. Month-on-month sales were, however, up 9.6% compared with 2.73 million tonnes in the first half of September.

Diesel sales typically fall in monsoon months as rains lower demand in the agriculture sector which uses the fuel for irrigation, harvesting and transportation. Also, rains slow vehicular movements. This had led to a fall in diesel consumption in the last three months. Since the end of the monsoon, consumption has risen month-on-month.

Consumption of diesel had soared 6.7% and 9.3%in April and May, respectively, as agriculture demand picked up and cars yanked up air-conditioning to beat the summer heat. It started to taper in the second half of June after the monsoon set in. It has continued to fall since.

Suppliers’ group OPEC sees India’s oil demand expanding on average by 2,20,000 barrels per day on the back of vigorous economic growth.

Consumption of petrol during October 1-15 was 12%more than in the COVID-marred October 2021 and 21.7% more than in pre-pandemic October 2019.

Diesel consumption was up 23.4% over October 1-15 in 2021 and 23.1% compared to October 2019.

With the continuing rise in passenger traffic at airports, jet fuel (ATF) demand rose 5.7% to 2,95,200 tonnes during first fortnight of October against the same period last year.

It was 36.5% more than in October 1-15, 2021, but 6.6% lower than pre-COVID October 2019.

Month-on-month jet fuel sales were almost 2% lower compared to 3,00,900 tonnes in September 1-15, 2023.

Cooking gas LPG sales were up 1.2% year-on-year at 1.25 million tonnes in the first half of October. LPG consumption was 10.6% higher than in October 1-15, 2021 and 153% more than in pre-COVID October 2019.

Month-on-month, LPG demand fell 7.5% against 1.36 million tonnes of LPG consumption during September 1-15, the data showed.