Big relief has come for businesses and the aviation sector as oil marketing companies have announced fresh price cuts effective June 1.
LPG Prices Fall Again—Third Straight Monthly Cut
In a continued trend, the price of a 19-kg commercial LPG cylinder has been reduced by ₹24. In Delhi, the new price stands at ₹1,723.50, following earlier cuts of ₹41 in April and ₹14.50 in May. This price drop benefits eateries, hotels, and businesses that rely on bulk LPG usage. However, domestic LPG prices remain untouched—still ₹853 for a 14.2-kg cylinder in the capital.
Jet Fuel Gets Cheaper by ₹2,414
The aviation sector also gets a breather. Aviation turbine fuel (ATF) prices have been slashed by ₹2,414.25 per kilolitre in Delhi, marking a 2.82% reduction. The revised rate is now ₹83,072.55 per kl. This is the third consecutive cut, after a 4.4% reduction in May and 6.15% in April. Jet fuel makes up nearly 40% of an airline’s operating cost, so this move could ease financial pressure on carriers—though airline operators have yet to respond publicly.
In other cities, ATF now costs:
- Mumbai: ₹77,602.73 per kiloleter
- Chennai: ₹86,103.25 per kiloleter
- Kolkata: ₹86,052.57 per kiloleter
What’s Fueling These Price Cuts?
These revisions are part of the monthly rate resets done by public sector oil retailers like IOC, BPCL, and HPCL. Prices are influenced by international crude benchmarks and the rupee-dollar exchange rate. Global oil prices have dipped recently due to weaker demand projections amid trade tensions—prompting this round of price drops.
Economic Impact: A Small Win for Many Sectors
Lower commercial LPG costs will reduce input expenses for the hospitality and food industries. Similarly, cheaper ATF may support airlines struggling with rising operational costs. While petrol and diesel prices remain unchanged, these cuts signal a softening trend in fuel prices that could help curb inflationary pressures across sectors.
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