Jet Fuel Prices Hit Record High, Commercial LPG Also Surges

In a major development impacting both the aviation industry and commercial establishments, jet fuel prices in India have more than doubled to cross ₹2 lakh per kilolitre for the first time ever, while commercial LPG prices have been increased by ₹195.50 per cylinder.

This sharp rise in fuel costs is expected to have a cascading effect on air travel fares, business expenses, and overall inflation, raising concerns among consumers and industry stakeholders.

ATF Prices Cross Historic ₹2 Lakh Mark

The price of Aviation Turbine Fuel (ATF) has surged to approximately ₹2.07 lakh per kilolitre, marking the first time in India’s history that it has crossed the ₹2 lakh threshold.

This significant increase highlights:

• Rising global crude oil prices
• Currency fluctuations
• Increased demand for aviation fuel

ATF is one of the largest cost components for airlines, accounting for nearly 35–40% of operational expenses.

Impact on Airlines and Airfares

The steep rise in ATF prices is likely to have a direct impact on the aviation sector.

1. Increase in Airfares

Airlines may:

• Pass on the increased cost to passengers
• Raise ticket prices, especially during peak travel seasons

2. Pressure on Profit Margins

Airlines already operating on thin margins may face:

• Reduced profitability
• Financial stress

3. Route Rationalisation

Some carriers may:

• Reduce frequency on less profitable routes
• Focus on high-demand sectors

Commercial LPG Price Hike

Alongside ATF, commercial LPG cylinder prices have been increased by ₹195.50, impacting businesses that rely heavily on LPG.

These include:

• Restaurants and hotels
• Street food vendors
• Catering services
• Small-scale food businesses

This hike comes as a major cost burden for businesses already dealing with rising input costs.

Domestic LPG Prices Remain Unchanged

In contrast, domestic LPG cylinder prices have not been increased in this revision.

• The last hike was ₹60 per 14.2 kg cylinder on March 7, 2026
• Current domestic prices remain unchanged

This indicates that the government is attempting to:

• Protect household consumers
• Avoid additional burden on middle-class families

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