Fuel Price Adjustments: Relief and Challenges Loom for Consumers

Recent adjustments in fuel prices see a reduction in aviation turbine fuel (ATF) by 7.3% and an increase in commercial LPG by Rs 111 per cylinder, addressing global benchmarks. Despite challenges, domestic LPG prices remain stable, while subsidies and compensations continue to support affordability for vulnerable consumers.

A significant price adjustment in the fuel sector was observed as aviation turbine fuel (ATF) saw a 7.3% price reduction, counterbalanced by a Rs 111 per cylinder hike in commercial liquefied petroleum gas (LPG).

The cut in ATF prices, effective Thursday, aims to alleviate pressure on airlines, where fuel represents about 40% of operational expenses. In contrast, the commercial LPG price surge reflects international cost increases. The Oil Ministry emphasized that revisions are aligned with global market dynamics.

Despite these fluctuations, domestic LPG prices for household use remain unchanged, with government subsidies protecting consumers from global volatility. The government continues its focus on affordable clean energy access, with approved compensations for Oil Marketing Companies facing substantial losses.