Commercial LPG and Jet Fuel Prices Rise Amid Iran Crisis; No Change for Household Cylinders
State-run oil marketing firms have increased commercial LPG cylinder prices by over 10% in major metro cities and aviation turbine fuel (ATF) rates by 9% for domestic travel, and more than doubled for international flights. This hike is attributed to a 44% spike in benchmark Saudi Contract prices and 20-30% of global LPG being stranded in the Strait of Hormuz due to the U.S.-Iran conflict. The government defended the hikes, stating OMCs are bearing significant under-recoveries, projected to reach ₹40,484 crore by May-end. Household LPG cylinder prices remain unchanged. Commercial LPG rates are deregulated and market-determined.
Key Points
- Commercial LPG cylinder prices increased by over 10% in major metro cities, while ATF rates rose by 9% for domestic and more than doubled for international flights.
- The price hike is primarily due to a 44% spike in benchmark Saudi Contract prices and disruptions in global LPG supply from the Strait of Hormuz.
- Oil Marketing Companies (OMCs) are facing substantial under-recoveries, estimated at ₹40,484 crore by May-end.
- Prices for household LPG cylinders have not been affected by these increases.
- Commercial LPG rates are deregulated and revised monthly, with their consumption being less than 10% of total LPG in India.
Exam Facts
- Commercial LPG prices hiked by ₹196-₹218 per cylinder across the country.
- Aviation fuel prices for international flights more than doubled to ₹2.07 lakh per kilolitre.
- Under-recoveries of oil marketing companies projected to cross ₹40,484 crore by May-end.
- Benchmark Saudi Contract prices spiked by 44% between March and April.
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