Impact of Fuel Price Changes on Aviation and Hospitality Sectors

Aviation Turbine Fuel (ATF) prices increased by 5.4% in the latest revision, marking the third consecutive monthly hike, while commercial LPG prices were reduced by Rs 10 per cylinder. These adjustments reflect global market trends and could significantly affect airlines' operating costs.

Aviation Turbine Fuel (ATF) prices surged by 5.4% this Monday, continuing a trend as oil companies align with global market shifts. In Delhi, ATF rates climbed to Rs 99,676.77 per kilolitre, marking the third straight monthly increase. These price hikes could impose further financial burden on airlines, where fuel constitutes a major chunk of operating expenses.

Commercial LPG prices witnessed a Rs 10 per cylinder reduction, bringing the cost down to Rs 1,580.50 for a 19-kg cylinder in Delhi. This followed a sharper Rs 15.50 rise seen earlier in October and offers some relief to the hospitality sector. Given the ongoing oscillation in prices, businesses remain watchful.

State-owned fuel giants, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, systematically revise ATF and LPG prices monthly based on international standards and currency exchange rates. Despite the activity seen in ATF and LPG rates, petrol and diesel prices have remained stable since last March.