On July 1, 2025, aviation turbine fuel (ATF) prices were sharply raised by 7.5%, ending a three-month streak of reductions. According to state-owned fuel retailers, ATF now costs ₹89,344.05 per kilolitre in Delhi after an increase of ₹6,271.5 per kl. This hike effectively reverses about half of the total price cuts implemented between April and June.
Previously, ATF rates were lowered by:
- ₹2,414.25 per kl (2.82%) on June 1
- ₹3,954.38 per kl (4.4%) on May 1
- ₹5,870.54 per kl (6.15%) on April 1
The latest jump follows a surge in international crude oil prices triggered by last month’s geopolitical tensions after Israel attacked Iran. Given that fuel accounts for nearly 40% of an airline’s operating costs, this increase is likely to strain carriers further. Airlines have not yet commented on the impact.
ATF prices were also revised in other major cities:
- Mumbai: ₹83,549.23 per kl (up from ₹77,602.73)
- Chennai: ₹92,526.09 per kl
- Kolkata: ₹92,705.74 per kl
Fuel prices vary by state due to differences in VAT and other local levies.
Commercial LPG Price Cut Again
While ATF became costlier, commercial LPG used in hotels and restaurants got cheaper for the fourth consecutive month. Oil companies slashed the price of a 19-kg commercial LPG cylinder by ₹58.50. In Delhi, it now costs ₹1,665, and in Mumbai, ₹1,616.50.
Since April, commercial LPG prices have dropped by ₹138 per cylinder:
- ₹41 cut on April 1
- ₹14.50 cut on May 1
- ₹24 cut on June 1
- ₹58.50 cut on July 1
Benchmark LPG prices have been under pressure from weaker summer demand, even as crude oil has become more expensive.
Domestic LPG and Motor Fuels Unchanged
The price of domestic LPG remains steady at ₹853 per 14.2-kg cylinder, after a ₹50 increase in April. Petrol and diesel prices also remain frozen, unchanged since a ₹2 per litre cut in March last year ahead of elections. Currently, petrol sells for ₹94.72 a litre in Delhi, and diesel costs ₹87.62.
State-run oil giants—Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL)—revise ATF and LPG rates monthly, based on international benchmarks and the rupee-dollar exchange rate.
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