Jet fuel prices on June 1 were cut by 1.3 per cent — the first reduction after 10 rounds of price hikes — on softening international crude oil rates.
Simultaneously, prices of commercial LPG — used by business establishments such as hotels and restaurants — were reduced by ₹135 per 19-kg cylinder.
The price of aviation turbine fuel (ATF) — the fuel that helps aeroplanes fly — has been reduced by ₹1,563.97 per kilolitre, or 1.27 per cent, to ₹1,21,475.74 per kl (₹121 per litre) in the national capital, according to a price notification of state-owned fuel retailers.
This is the first reduction after 10 rounds of price increases this year. Rates were hiked by ₹6,188.25 per kl, or 5.29 per cent, on May 16, to a record high level of ₹1,23,039.71 per kl.
Commercial LPG rates were reduced to ₹2,219 per 19-kg cylinder, from ₹2,354, the notification showed.
Prior to the cut, rates of commercial LPG had risen by ₹355.5 per cylinder this year.
However, prices of cooking gas LPG used in households remained unchanged at ₹1,003 per 14.2-kg cylinder. Rates had been hiked by ₹3.50 a cylinder on May 19. Prior to that prices were hiked by ₹50 per cylinder on March 22 and again by the same quantum on May 7.
Since April 2021, domestic LPG prices have risen by ₹193.5 per cylinder.
Meanwhile, petrol and diesel prices remained unchanged at ₹96.72 per litre and ₹89.62 a litre respectively. An excise duty cut by the government had helped reduce petrol by ₹8.69 a litre and diesel by ₹7.05 per litre on May 22 but for that, the base price has remained unchanged since April 6. Prior to that, prices had risen by a record ₹10 per litre each.
Retail price of petrol, diesel and domestic cooking gas was way below the cost and so the softening in benchmark prices is being used to set off those losses.
Jet fuel prices are revised on the 1st and 16th of every month, while petrol and diesel rates are revised daily, based on equivalent rates in the international market.
ATF in Mumbai now costs ₹120,306.99 per kl, while it is priced at ₹126,369.98 in Kolkata and ₹125,725.36 in Chennai.
Rates differ from state to state, depending on the incidence of local taxation.
Fuel rates have been on the rise in India because energy prices globally have risen on the back of supply concerns following Russia's invasion of Ukraine and demand returning after being hit by the pandemic. India is 85 per cent dependent on imports to meet its oil needs.
While oil prices have eased from a near 14-year high of $140 per barrel, it continues to trade above $100. On Wednesday, Brent — the world's most used benchmark — was trading at $117.07 per barrel.
To compound things, the rupee has depreciated against the U.S. dollar, making imports costlier.
