On the back of global crude oil price surges over a month, aviation turbine fuel, branded petrol and commercial LPG started costing more in the country beginning Wednesday, though the cost of normal petrol, diesel and domestic LPG remained unchanged.The rise has been across the deregulated fuel categories which, the government said, needed to absorb the shocks of international price rise, with crude oil alone surging from $70 to $100 per barrel in a month.ATF prices in India were deregulated in 2001 and are revised on a monthly basis based on a formula of international benchmarks. Due to the closure of Strait of Hormuz and extraordinary situation in global energy markets, the price of ATF for domestic markets was expected to increase by more than 100 per cent from April 1.“But to insulate the domestic travel costs from the substantial increase in international prices, PSU oil marketing companies of the Ministry of Petroleum, in consultation with the Ministry of Civil Aviation, have passed only a partial and staggered increase of 25 per cent (only Rs 15/litre) to the airlines. Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world,” the government said. Accordingly, today ATF prices for domestic airlines were raised by 8.5 per cent.Petroleum Ministry Joint Secretary Sujata Sharma said the ATF cost escalation was only partial. “Scheduled domestic airlines will see a rise of Rs 21 per litre and non-schedule of Rs 110 per litre,” she said, adding that the government would take a further call on ATF prices at an appropriate time.Another deregulated fuel category that has seen a price rise today is commercial LPG cylinders used by industries and hotels. These prices are also market determined and revised monthly. “The consumption of commercial LPG is less than 10 per cent of the total LPG consumed in the country. April 1 price increase in commercial LPG price is due to a 44 per cent surge in the Saudi Contract Price: from $542/MT in March to $780/MT for April, as 20-30% of global LPG supplies are stuck in the Strait of Hormuz,” the Petroleum Ministry said.Commercial LPG prices were hiked by Rs 195.50. A 19-kg commercial LPG will cost Rs 2,078.50 in Delhi. Premium petrol will also cost more. Last week, there was a Rs 2/litre upward revision on premium petrol variants–XP95, Power95, Speed–whose prices are revised on fortnightly basis. These are purchased by motorists, at a premium, by choice.Apart from the above three categories, there has been no change in prices of petrol, diesel or domestic LPG.Petrol still costs Rs 94.77/litre and diesel Rs 87.67/litre in Delhi. “This is possible because of excise duty cuts by the government after global petroleum prices rose by up to 100 per cent in the last one month. PSU OMCs are incurring under-recoveries of Rs 24.40/litre on petrol and Rs 104.99/litre on diesel as of today. But all petrol pumps are offering regular petrol and diesel at unchanged prices, even as prices across the world have risen by 30 to 50 per cent,” the ministry said.Likewise, domestic LPG consumers continue to be protected. A 14.2 kg domestic cylinder still costs Rs 913 and those underPM Ujwala Yojana Rs 613.”At current prices, OMCs are incurring under recovery of Rs 380/cylinder. Cumulative losses by May-end will reach approximately Rs 40,484 crore. Last year also, out of total losses of Rs 60,000 crore, Rs 30,000 crore was absorbed by oil PSUs and Rs 30,000 crore by the Centre in order to insulate the citizens from high international LPG prices,” Sharma said.India’s domestic LPG price is one of the lowest worldwide as against Pakistan’s Rs 1,046, Sri Lanka’s Rs 1,242 and Nepal’s Rs 1,208. The government today said crude oil supplies for two months had been secured and there was no cause for panic buying.


