The prices for liquefied petroleum gas (LPG) cylinders have been adjusted upwards effective April 1. Notably, both commercial and smaller LPG cylinders will see significant price increases in key urban areas. In Delhi, the cost of a 19 kg commercial LPG cylinder has been raised to Rs 2,078.50, reflecting an increase of Rs 195.50.

Additionally, the price of the 5 kg FTL cylinder is now set at Rs 549 per refill, which marks a rise of Rs 51. Similar trends have been observed in Kolkata, where the price of the 19 kg commercial LPG cylinder increased by Rs 218, mirroring the broader context of escalating fuel costs. In contrast, domestic cooking gas rates remain unchanged; the price for a 14.2 kg cylinder in Delhi stays at Rs 913, following a previous hike of Rs 60 on March 7.

Impact of Geopolitical Tensions

This latest price adjustment occurs amidst growing geopolitical tensions in West Asia, particularly involving the United States, Israel, and Iran. These developments have resulted in a blockade of the Strait of Hormuz, a critical international route for crude oil and energy transport, further influencing fuel price dynamics.

Increase in Aviation Turbine Fuel (ATF) Prices

Alongside the LPG price increases, Aviation Turbine Fuel (ATF) prices have also seen a rise across major metropolitan areas as of April 1. Delhi’s ATF is now priced at Rs 2,07,341.22 per kilolitre, while in Kolkata, the cost is Rs 2,05,953.33 per kilolitre. In Mumbai, ATF is priced at Rs 1,94,968.67 per kilolitre, and in Chennai, it stands at Rs 2,14,597.66 per kilolitre. These increases reflect the upward trend in global crude oil prices, affecting airline operations and overall airfare costs significantly.

Domestic Airlines Face Rising Fuel Costs

Additionally, domestic airlines operating on international routes have experienced substantial increases in ATF prices. Previously set at Rs 816 per kilolitre, prices surged to Rs 1,690 per kilolitre following the recent adjustments, more than doubling in alignment with global pricing trends. This sharp increase is consistent with the broader rise in jet fuel prices globally, influenced by geopolitical uncertainties in West Asia, rising crude oil costs, and expanded refining crack spreads.

Government Responses to Fuel Price Surges

In response to fluctuating oil prices, the Central government had earlier lowered the excise duty on petrol to Rs 3 per litre and eliminated it for diesel, a decision formalized through a Gazette notification under the Central Excise Act of 1944. Meanwhile, a windfall tax of Rs 21.5 per litre has been imposed on diesel exports. The government has reassured that fuel supplies nationwide remain stable. The Ministry of Petroleum and Natural Gas confirmed that “all retail outlets are operating normally across the country” and that there are “adequate stocks of petrol and diesel available at all petrol pumps.” Citizens are urged to refrain from panic buying amid circulating rumors regarding supply shortages. Officials emphasized that refineries are functioning at high capacity with sufficient crude inventories, and domestic LPG production has been increased to meet demand effectively.

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