ATF Prices Cut by 3%, Commercial LPG Gets Cheaper by ₹24 – Relief for Airlines and Hospitality Sector

State-run oil marketing companies have announced a 3% reduction in the price of jet fuel (ATF) effective June 1, 2025, reflecting a continued downward trend in international oil benchmarks.  

ATF prices in Delhi have been lowered by ₹2,414.25 per kilolitre (2.82%) to ₹83,072.55 per kilolitre. This is the third monthly cut in a row, following a 4.4% drop on May 1 and a 6.15% drop in April. 

Aviation Sector Gets Breather 

This cumulative reduction has not only reversed earlier price hikes seen in the year but also provided critical financial relief to the aviation sector, where fuel accounts for nearly 40% of operational expenses. Although airlines haven’t officially commented, the move is expected to ease cost pressures. 

In Mumbai, the ATF price now stands at ₹77,602.73 per kilolitre, down from ₹79,855.59. In other metros, the revised rates are ₹86,103.25 in Chennai and similarly adjusted levels in Kolkata. 

Commercial LPG Prices Also Down 

Alongside ATF, the price of commercial LPG cylinders used predominantly in hotels, restaurants, and other commercial kitchens has been trimmed by ₹24 per 19-kg unit. This brings the rate in Delhi to ₹1,723.50 and in Mumbai to ₹1,647.50. 

This reduction adds to previous cuts of ₹14.50 in May and ₹41 in April, driven by easing global prices for oil and gas. 

Domestic LPG, Petrol, and Diesel Unchanged 

The price of domestic LPG used for household cooking remains unchanged at ₹853 for a 14.2-kg cylinder. This comes after a ₹50 hike in April, and no further changes have been made despite falling global prices. 

Interestingly, petrol and diesel prices have remained static for over a year. The last cut, amounting to ₹2 per litre, was implemented in March 2024, ahead of the general elections. As of now, petrol is priced at ₹94.72 per litre in Delhi, while diesel costs ₹87.62. 

Behind the Price Revisions 

Fuel prices in India are revised monthly by Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL), based on the average global benchmark and the rupee-dollar exchange rate. Prices vary across states depending on local taxes, including VAT. 

The consistent price drop in ATF and commercial LPG aligns with the recent dip in international crude prices, attributed largely to a slowdown in global trade and a weaker demand outlook. 

Read More: Key Trends to Watch in June 2025: RBI MPC Meeting, Inflation Data and More. 

Conclusion 

The recent price cuts bring much-needed financial breathing space for the aviation and hospitality industries. However, with domestic fuel prices like petrol and diesel remaining stagnant despite the international trend, broader consumer relief is still limited. All eyes now remain on global trends and domestic fiscal strategies in the coming months. 

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