The Government of India has reduced jet fuel prices by 6.3%, marking the lowest level this year, but increased commercial LPG prices by Rs 48.5 per cylinder, impacting hotels and restaurants.
On a calm Tuesday morning, the government announced changes in fuel prices that had mixed effects on different sectors.
The government reduced the price of jet fuel, or Aviation Turbine Fuel (ATF), by 6.3%.
This marks the lowest level this year.
In Delhi, the price dropped by Rs 5,883 per kilolitre, bringing it down to Rs 87,597.22 per kilolitre.
This was the second reduction in this month.
It provided relief to airlines, where fuel accounts for almost 40% of operational costs.
This reduction is expected to ease airlines’ financial burdens and may lead to more competitive ticket prices.
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While airlines benefitted from this reduction, the hospitality sector faced an increase in costs.
The price of commercial LPG, which hotels and restaurants use, rose by Rs 48.5 per 19-kg cylinder.
This price hike is likely to impact restaurants and hotels.
They rely on commercial LPG for their daily operations, especially for cooking.
Many businesses in this sector may see higher operational costs, potentially leading to higher prices for customers.
Moreover, these price adjustments are part of the government’s monthly revisions, which reflect international oil price trends.
As the aviation industry enjoys lower fuel prices, the hospitality sector braces for higher expenses.
The contrast between the two sectors highlights how global oil markets can have varied impacts on different industries.
This variation depends on their reliance on specific fuels.
