Aviation Turbine Fuel price increased by 7.5%

Mumbai, 01 July 2025: After three consecutive months of decline, jet fuel prices have been raised sharply. On 1 July 2025, state-run oil companies announced a 7.5% increase in Aviation Turbine Fuel (ATF) prices, driven largely by rising international crude rates linked to geopolitical developments, particularly following Israel’s recent strike on Iran.

In Delhi, the ATF price has been raised by ₹6,271.5 per kilolitre (kl), setting the new rate at ₹89,344.05 per kl.

Recent Jet Fuel Price Trends in Delhi

• April 1: Reduced by ₹5,870.54 (6.15%)
• May 1: Reduced by ₹3,954.38 (4.4%)
• June 1: Reduced by ₹2,414.25 (2.82%)
• July 1:Increased by ₹6,271.5 (7.5%)

The increase partially offsets the cumulative drop seen in the previous three months.

Jet Fuel Becomes Costlier Nationwide, Pressuring Airline Margins

Airlines across the country are likely to feel the pressure as aviation fuel, which constitutes nearly 40% of operating expenses, becomes more expensive. Although no official statements have yet been made by carriers, the revised prices in other major cities are as follows:

• Mumbai: ₹83,549.23 per kl (up from ₹77,602.73)
• Chennai: ₹92,526.09 per kl
• Kolkata: ₹92,705.74 per kl

Given the ongoing geopolitical tensions and uncertain oil market outlook, further cost volatility may be expected in the aviation sector.

Commercial LPG Prices Drop Again, Offering Relief to Businesses

In contrast to the hike in jet fuel, commercial LPG cylinders (19 kg) have become cheaper for the fourth month in a row, with oil marketing companies announcing a fresh reduction of ₹58.50.

Updated Commercial LPG Prices

• Delhi: ₹1,665
• Mumbai: ₹1,616.50

Recent Commercial LPG Price Changes

• April 1: Cut by ₹41
• May 1: Cut by ₹14.50
• June 1: Cut by ₹24
• July 1:Cut by ₹58.50
• Total reduction since April: ₹138

This downward trend reflects softening global LPG benchmarks and lower seasonal demand, offering some cost relief for restaurants, caterers, and small businesses relying on bulk LPG.

No Changes in Domestic LPG, Petrol, or Diesel Prices

The prices of domestic LPG cylinders (14.2 kg) have not been revised, remaining at ₹853 in Delhi. The last update was in April 2025, with a ₹50 increase. Similarly, petrol and diesel prices remain unchanged since a pre-election cut in March 2024:

• Petrol (Delhi): ₹94.72 per litre
• Diesel (Delhi): ₹87.62 per litre

This price stability continues amid fluctuating international fuel trends.

Monthly Pricing Revisions Follow Global Trends and Tax Structures

Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) revise fuel prices in India monthly. Rates are determined by international benchmark prices and currency exchange fluctuations. Additionally, local taxes such as VAT lead to city-wise variations in final prices.

With ATF costs rising sharply while commercial LPG gets more affordable, the impact on businesses and transport services is expected to be mixed in the near term.

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