The price of aviation turbine fuel (ATF) was reduced by 3 percent on June 1, 2025, marking the third consecutive monthly reduction following softening international oil prices. The reduction amounts to a decrease of ₹2,414.25 per kilolitre, bringing the ATF price to ₹83,072.55 per kilolitre in Delhi, home to one of India’s busiest airports.

This cut follows earlier reductions of 4.4 percent (₹3,954.38 per kl) on May 1 and a steep 6.15 percent (₹5,870.54 per kl) cut implemented from April 1. Together, these reductions have more than offset the price hikes seen earlier this year.

Lower ATF prices will ease the operating costs for commercial airlines, where fuel typically accounts for nearly 40 percent of overall expenses. Airlines, however, did not immediately respond to requests for comment on the latest price cut.

Other metropolitan cities also saw declines in ATF prices. In Mumbai, the rate fell to ₹77,602.73 per kl from ₹79,855.59, while in Chennai and Kolkata prices were reduced to ₹86,103.25 and ₹86,052.57 per kl respectively.

In addition, oil marketing companies reduced the price of commercial LPG by ₹24 per 19-kg cylinder. The current commercial LPG price now stands at ₹1,723.50 in Delhi and ₹1,647.50 in Mumbai. This latest cut follows a ₹14.50 reduction on May 1 and a ₹41 reduction implemented on April 1.

The price of domestic LPG cylinders weighing 14.2 kg remains unchanged at ₹853 per cylinder, despite international price volatility. The domestic LPG price was previously increased by $50 per cylinder in April.

The price changes for ATF and commercial LPG are driven by the softening of international oil prices, which has been influenced by the global trade war affecting fuel demand outlook. The rates of these fuels vary by state due to differences in local taxes including VAT.

State-owned fuel companies Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revise the prices of ATF and cooking gas monthly based on international benchmark prices and foreign exchange rates.

Despite the fall in international crude prices, domestic prices of petrol and diesel remain unchanged. The last reduction of ₹2 per litre for both petrol and diesel took place in mid-March 2024 before the general elections. Currently, petrol costs ₹94.72 per litre and diesel is priced at ₹87.62 per litre in Delhi.

The latest fuel price cuts are expected to benefit the aviation sector and commercial establishments reliant on LPG, providing some relief amid fluctuating global oil markets.

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