Overview
- Public sector oil marketing companies reduced aviation turbine fuel for international carriers by about 27% on June 1, lowering international ATF by roughly USD 400 per kilolitre to about USD 1,100/kl.
- Domestic ATF was kept unchanged at Rs 104,927.18 per kilolitre, creating an estimated under-recovery of about Rs 30 per litre for sales to Indian carriers.
- OMCs raised commercial LPG prices on June 1—19-kg cylinders by Rs 42 and 5-kg free-trade bottles by Rs 11—while the 14.2-kg household cylinder remained at Rs 913, leaving firms facing roughly Rs 650 loss per domestic cylinder.
- Petrol and diesel prices have held steady in early June after a string of increases in May that cumulatively added near Rs 7.50 per litre, keeping pump rates at their highest since May 2022.
- The changes reflect a policy trade-off driven by the West Asia conflict, which has tightened supply lines through the Strait of Hormuz and forced longer shipping routes, and they increase pressure on the government to fund past and potential compensation to OMCs.