ATF Price Hiked 3%, Commercial LPG Rate Cut by ₹33.50
In the latest fuel price revision effective August 1, 2025, the price of Aviation Turbine Fuel (ATF)—commonly used as jet fuel—was increased by approximately 3%, equivalent to a rise of ₹2,677.88 per kiloliter, bringing the ATF cost to around ₹92,021.93 per kiloliter in the national capital region. This marks a consecutive monthly increase in ATF prices, influencing the cost structure for the aviation industry and potentially leading to higher airfares due to increased operational costs for airlines.
Conversely, commercial LPG cylinder prices have been reduced by ₹33.50 in this month’s revision. The cut in commercial LPG rates—used widely in restaurants, hotels, and other commercial kitchens—will help reduce cooking fuel expenses for businesses relying on LPG, offering some relief amid fluctuating energy costs.
Details of the Price Changes
ATF price increase: ₹2,677.88 per kiloliter (2.9% approx.) to ₹92,021.93 per kiloliter.
Commercial LPG price cut: ₹33.50 reduction per commercial cylinder.
These changes reflect the ongoing adjustments in global crude oil prices, refining costs, and domestic taxation policies that affect fuel costs.
Impact of ATF Price Increase
The ATF price hike directly impacts airlines’ fuel expenditure, which accounts for a significant portion of operational costs. As a result, this could lead to moderate increases in airfare in the near term, depending on how airlines manage the additional expenses.
Commercial LPG Price Cut and Benefits
The reduction in commercial LPG rates will ease the operational costs for food service providers and other businesses relying on LPG fuel. This may indirectly influence pricing in the hospitality sector and related industries by lowering overhead costs.
Frequently Asked Questions (FAQ) About ATF Price Hike and Commercial LPG Rate Cut
Q1: What is the new price of ATF after the hike?
The price of Aviation Turbine Fuel (ATF) has risen to approximately ₹92,021.93 per kiloliter in the national capital.
Q2: By how much was the ATF price increased?
The price was increased by about ₹2,677.88 per kiloliter, which is roughly a 3% rise.
Q3: What commercial LPG rate change was announced?
Commercial LPG cylinder rates were cut by ₹33.50 per cylinder in August 2025.
Q4: Why does ATF price affect airfares?
Fuel costs constitute a major part of airline expenses; therefore, a rise in ATF prices can lead to increased airfare to offset higher operational costs.
Q5: Who benefits from the commercial LPG price cut?
Restaurants, hotels, and other businesses using commercial LPG as cooking fuel will benefit from lower cooking fuel bills.
Q6: Are these price changes linked to global crude oil prices?
Yes, domestic fuel prices, including ATF and LPG, are influenced by fluctuations in global crude oil prices and refining costs.
Published on: August 1, 2025
Published by: PAVAN
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