State fuel retailers raised the aviation turbine fuel price for domestic airlines by Rs 16 to about Rs 137 a litre from Rs 121. The commercial 19-kg LPG cylinder went up Rs 62.50 to Rs 2,810. Domestic 14.2-kg LPG was left at Rs 942 in Delhi. For the October 1-15 fortnight, the Finance Ministry also cut the windfall levy on diesel exports to Rs 16 a litre from Rs 20 and on ATF exports to Rs 10.50 from Rs 15. The report links the increases to tensions in West Asia.
Why it matters for listed companies
Jet fuel can make up as much as 40% of an airline's operating costs, according to the report, so listed carriers absorb a sharp, direct rise in their largest cost. Restaurants, hotels and caterers that use commercial LPG see higher input costs. The cut in windfall levies on diesel and ATF exports improves export realisations for refiners that sell fuel overseas. Keeping domestic LPG unchanged means state oil marketers continue to carry the gap on household cylinders.
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