ATF Price Hiked by 7.5%, Commercial LPG Rate Cut by ₹58.5
New Delhi, July 1, 2025 – In a significant fuel price revision, Aviation Turbine Fuel (ATF) prices have been hiked by 7.5%, while commercial LPG (liquefied petroleum gas) rates have been slashed by ₹58.5 per 19-kg cylinder, offering mixed implications across sectors.
According to the latest pricing notification from state-run oil marketing companies, ATF will now cost ₹97,988.36 per kilolitre in Delhi, up from ₹91,353.1. This sharp increase marks the third consecutive monthly hike, largely driven by fluctuating global crude oil prices and rupee depreciation.
On the other hand, commercial LPG cylinders, widely used in hotels, restaurants, and commercial kitchens, will now be available for ₹1,719.5 in Delhi, down from ₹1,778.
Key Highlights:
ATF up by 7.5%: Major concern for the aviation sector as fuel costs form ~40% of airline operational expenditure.
Commercial LPG down by ₹58.5: A welcome relief for the food and hospitality sector battling inflationary pressures.
No change in domestic LPG: Rates for domestic 14.2 kg LPG cylinders remain unchanged.
Sectoral Impact
Aviation Industry
The increase in ATF prices is expected to escalate airfares as airlines pass on the burden to passengers. This could impact demand during the peak monsoon travel season.
Hospitality and Retail
The reduction in commercial LPG rates brings slight relief to eateries, bakeries, and food service units who have seen sustained input cost pressures in recent months.
Consumers
While domestic LPG prices are untouched, the unchanged household rates may be reviewed closer to the festive season depending on international energy trends.
Why This Matters
According to Vizzve Finance, the twin adjustment in ATF and LPG prices highlights India's dual challenge of managing inflation while ensuring industry viability. The increase in ATF could potentially hurt aviation recovery momentum, while the LPG cut is aligned with inflation-control strategies in the service sector.
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FAQ
Q1. Why was the ATF price increased in July 2025?
ATF prices were raised due to global crude oil volatility, higher international jet fuel benchmarks, and weakening of the Indian rupee.
Q2. Who decides ATF and LPG prices in India?
Prices are determined by state-run oil marketing companies (OMCs) and are revised on the 1st of every month based on global trends.
Q3. Is there any change in domestic LPG rates?
No, the domestic 14.2 kg LPG cylinder price remains unchanged for now.
Q4. How will the ATF price hike affect air travel?
Airlines are likely to increase ticket prices to compensate for the rise in operational costs, which could make flying more expensive for passengers.
Q5. How does the LPG cut benefit small businesses?
Restaurants, bakeries, and canteens will see reduced input costs, which may help control overall food inflation in urban centers.
.Publish on July 1,2025 by :selvi
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