On Monday (1 January), the price of jet fuel or Aviation Turbine Fuel (ATF) was reduced by 4 per cent, marking the third consecutive monthly decrease.

The cost of commercial cooking gas (LPG) also also reduced, with rates dropping by Rs 1.50 per 19-kg cylinder, aligning with international benchmarks.

Despite these changes, the cost of domestic LPG, which is commonly used for cooking in households, remained unchanged at Rs 903 per 14.2-kg cylinder.

The price of Aviation Turbine Fuel (ATF) in the national capital was reduced by Rs 4,162.5, marking a 3.9 per cent decrease, bringing it down to Rs 101,993.17 per kilolitre, as per the price notifications issued by state-owned fuel retailers.

This is the third straight monthly reduction in jet fuel prices.

The price of ATF was reduced by nearly 6 per cent, which is Rs 6,854.25 per kilolitre, in November and in December, it was cut by Rs 5,189.25, or 4.6 per cent.

The trio of reductions have eliminated nearly 45 per cent of the Rs 29,391.08 per kilolitre hike in prices that was implemented in four monthly installments beginning 1 July.

The decrease in jet fuel prices, accounting for 40 per cent of an airline’s operating expenses, will alleviate the pressure on airlines that are already struggling financially.

In addition, oil companies have also decreased the cost of commercial LPG, which is utilized in various businesses like hotels and restaurants, by Rs 1.50.

The price of a 19-kg commercial LPG cylinder has been revised to Rs 1,755.50 in the national capital and Rs 1,708.50 in Mumbai.

The decrease in commercial LPG price comes after a reduction of Rs 39.5 per cylinder that was implemented on 22 December.

The Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), all of which are state-owned, adjust the prices of cooking gas and ATF on the first day of each month.

These adjustments are based on the average international price from the preceding month.

The adjustment made on 22 December was an exception to this routine.

Petrol and diesel prices continued to remain on freeze for a record 21st month in a row. In the nation’s capital, petrol is priced at Rs 96.72 per litre, while diesel is available for Rs 89.62 per litre.

Though state-owned fuel retailers are expected to adjust petrol and diesel prices daily, based on a 15-day rolling average of global benchmark fuel prices, they have not done so since 6 April 2022.