India Hikes Jet Fuel and Commercial LPG Prices Amid Middle East Conflict

Kathmandu. As the impact of the ongoing war in West Asia becomes evident in the energy market, India has increased the prices of jet fuel and commercial LPG. However, the government stated that it has attempted to provide some relief to consumers by partially limiting the potential sharp price hikes.

According to India's Ministry of Petroleum, the price of Aviation Turbine Fuel (ATF) has been increased by 8.5 percent in the capital, Delhi, with similar hikes implemented in other major cities. Since ATF is a primary operational cost for airlines, it is expected that this price increase could impact airfares.

The ministry noted that the Middle East conflict has created an extraordinary situation in the global energy market, particularly affecting oil and gas supplies through the Strait of Hormuz. Under these circumstances, it was estimated that ATF prices could have risen by more than 100 percent. However, the government stated that it has only made a 'partial and limited' adjustment of about 25 percent to minimize the direct impact on domestic air travel.

Meanwhile, it has been stated that the full impact of the price hike will apply to international flights, meaning aircraft flying to foreign destinations will have to bear the full increased fuel costs.

The price of Liquefied Petroleum Gas (LPG) used for commercial purposes has also been increased. The price of a 19-kilogram gas cylinder has been raised by approximately 200 Indian Rupees in Delhi, Kolkata, Mumbai, and Chennai.

India is the world's fourth-largest LNG importer and second-largest LPG buyer, sourcing primarily from the Middle East. Therefore, the conflict there is seen to have a direct impact on the Indian energy market.

However, the prices of domestic LPG have been kept unchanged in this price adjustment, signaling that there will be no immediate additional burden on general consumers.