The prices for commercial liquefied petroleum gas cylinders were increased by Rs 993 from Friday amid rising global energy rates triggered by the conflict in West Asia, reported ANI.
A 19-kg commercial LPG cylinder is now priced at Rs 3,071.5 in Delhi and Rs 3,024 in Mumbai.
The rates for commercial cylinders were last increased by Rs 195.5 on April 1.
The rates for domestic cylinders were not changed. A 14.2 kg cylinder costs Rs 913 in the national capital.
State-owned Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum revise the prices of LPG and Aviation Turbine Fuel on the first day of every month based on international benchmarks and the exchange rate.
Energy supplies to India have been disrupted since the conflict in West Asia broke out on February 28. Iran has effectively blocked the Strait of Hormuz, through which about 20% of global petroleum liquids supply passes, for most commercial ships.
This has affected LPG supplies in India. India imports 88% of its crude oil needs and about half of its natural gas requirement. This mostly comes through the Strait of Hormuz.
On Friday, the Indian Oil Corporation said that petrol and diesel prices were kept unchanged to insulate “domestic consumers from the recent increase in international fuel prices”, ANI reported.
Retail prices of petrol and diesel have been kept unchanged for consumers, who account for nearly 90% of total consumption, PTI quoted the state-owned entity as saying. Prices of kerosene supplied through the public distribution system have also remained unchanged.
The Indian Oil Corporation also said that aviation turbine fuel prices for domestic airlines remained unchanged as state-owned oil companies chose to “absorb the increase in global fuel costs to shield carriers and passengers”.
Windfall gains tax for exports
Meanwhile, the windfall gains tax on the export of diesel was cut to Rs 23 per litre from Rs 55.5 per litre and on aviation turbine fuel to Rs 33 per litre from Rs 42 per litre.
This tax is a one-time or temporary levy imposed by the Union government on specific industries, primarily oil and gas, that experience unexpected, massive profits due to unforeseen external events.
The Ministry of Finance stated that existing excise duty rates on petrol and diesel for domestic consumption will remain unchanged.
The road and infrastructure cess on the export of diesel will be nil for the next fortnight, from Friday.
The rate of duty on export of petrol will remain nil, the ministry said.
Airlines ask Centre for relief on jet fuel prices
The announcements came as Air India, IndiGo and SpiceJet told the Union government on April 26 that the country’s aviation sector was on the verge of “stopping operations”, and had sought a revision in aviation turbine fuel prices amid the conflict in West Asia.
“In order to survive, sustain and continue operation, we request your urgent intervention for immediate and meaningful financial support to tide over the current situation,” the Federation of Indian Airlines had said in a letter. The federation represents the three airlines.
Aviation turbine fuel accounts for about 40% of an airline’s operating expenses.
In its letter, the federation urged the civil aviation ministry to use a uniform fuel pricing system for domestic and international operations.
“Any ad hoc pricing [domestic vs international] and/or irrational increase in the price of [aviation turbine fuel] will result in unsurmountable losses for airlines and will lead to grounding of aircraft, resulting in cancellation of flights,” the federation had said.
Last month, the government capped the hike in aviation turbine fuel for domestic operations at Rs 15 per litre, but increased the rates for international operations by Rs 73 per litre.
The Federation of Indian Airlines said that this made both international and domestic operations unviable.
The war
The US and Israel launched an attack on Iran on February 28, claiming that Tehran’s action posed an existential threat to Israel. Washington acts as a guarantor of Israel’s security.
Iran retaliated by striking US military bases in the region and Israel, and targeted major cities in Gulf countries and some ships.
On April 17, Iran reopened the Strait of Hormuz to commercial vessels after a 10-day ceasefire between Israel and Iran-backed militant group Hezbollah in Lebanon. A day later, however, Tehran said it was reimposing strict military controls on the waterway, alleging “repeated breaches of trust” by the US.
On April 13, Washington began blockading Iranian ports to mount economic pressure on Tehran.
The developments come amid continuing uncertainty over whether fresh talks between Iran and the US will take place. An initial round of peace talks between Iran and the US in Islamabad collapsed on April 12.
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