OMCs hike commercial LPG and aviation fuel prices from October 1

NEW DELHI, (IANS): State-owned oil marketing companies (OMCs) have increased commercial LPG rates by Rs 62.50 per 19-kg cylinder effective from Thursday in line with firming international benchmark prices.

Apart from that, aviation turbine fuel (ATF) prices were also increased by Rs 16 per litre. ATF prices for domestic airlines have been increased to Rs 137 per litre from Rs 121 per litre.

However, the latest hike follows an increase of Rs 6.28 per litre or 5.46 per cent in September and Rs 5 per litre in August. ATF accounts for up to 40 per cent of an airline's operating costs which makes fuel prices a key component of carriers' expenses.

Moreover, commercial LPG prices were increased by Rs 62.50 per 19-kg cylinder following a Rs 9.50 increase in September after rates were cut by Rs 192 in August and Rs 183.50 in July.

Commercial LPG prices had surged to a record high in June amid disruptions to global energy supplies and elevated international prices. In addition, rates had risen by Rs 1,373 per 19-kg cylinder between February and June from Rs 1,740.50 to Rs 3,113.50 before declining in July and August.

However, prices of domestic LPG are kept unchanged at Rs 942. Prices of these segment cylinders had risen by Rs 89 per cylinder between March and June amid supply disruptions linked to the West Asia crisis and a surge in international energy prices.

The latest revisions are based on movements in international benchmark prices and the rupee-dollar exchange rate.

ATF and LPG prices are revised on the first day of every month and may vary across states due to local taxes such as VAT.

Additionally, fuel -- petrol and diesel -- prices that were increased earlier in May also have remained unchanged.