Reducing the prices of LNG commercial by 51.50 rupees per 19 kilogram of a cylinder; ATF prices decreased

Liquefied natural gas prices have been reduced by 51.50 rupees per cylinder 19 kg. The sixth consecutive reduction since April has decreased from the price of the LPG commercial cylinder 19 kg to 1580 rupees in the national capital. Moreover, ATF fuel prices (ATF) has been reduced by 1.4 percent as state -owned retailers have modified rates of response to low global standard prices. The ATF price is now 90,713.52 rupees per kilometer in New Delhi after a cut of 1,308.41 rupees per kilometer.

Since April, the prices of LNG have been reduced by 223 rupees per cylinder. The decrease in liquefied natural gas prices is due to the reduced standard prices, amid the low demand in the summer.

The low prices of ATF follow a period of successive increases, as rates increased by 8,949.38 rupees per kL due to the rise in international oil prices driven by geopolitical tensions and commercial conflicts. This adjustment is expected to reduce the financial burden on commercial airlines, as fuel represents nearly 40 % of operating costs. Airlines were pressured to maintain profitability amid fuel prices fluctuating.

While ATF and LPG prices have seen discounts, domestic liquefied natural gas prices are still unchanged at 853 rupees for a 14.2 kg cylinder, after an increase of 50 rupees in April. These pricing modifications are made monthly by state -owned major oil companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), based on international standards and Forex rates.

ATF price discounts vary across cities due to local taxes. For example, Mumbai witnessed a decrease to 84,832.83 rupees per kL, while Chennai and Kolaka saw an increase to 94,151.96 rupees 93,886.18 per kilometer, respectively.

Despite the recent discounts, global oil prices are still suffering from volatility, and are often driven by geopolitical developments. While the current cuts provide a temporary reduction, pricing expectations in the long run are still unconfirmed amid possible market fluctuations. Analysts suggest that airlines may benefit in the short term, but continuous cost management strategies is very important due to the inability to predict the oil market.

However, gasoline and diesel prices are still unchanged since mid -March of the previous year, when prices were reduced by 2 rupees per liter. The current prices stand to 94.72 rupees per liter of gasoline and 87.62 rupees for diesel in Delhi.