State-run oil companies on Wednesday reduced prices of aviation turbine fuel (ATF) and commercial liquefied petroleum gas (LPG), while private fuel retailer Nayara Energy rolled back its March increase in petrol and diesel prices, as international crude oil prices fell sharply following the easing of the West Asia conflict.
Nayara Energy cut petrol prices by ₹5 per litre and diesel by ₹3 per litre, effectively reversing the hikes introduced in March, industry executives said, requesting anonymity. The company operates around 7,000 fuel stations across the country, compared with more than one lakh retail outlets, over 90% of which are run by state-owned oil marketing companies (OMCs).
Although India’s average crude oil import price fell below $70 a barrel on Friday for the first time since the West Asia conflict began, petrol and diesel prices at most public sector OMC outlets remained unchanged. Similarly, there was no change in the price of the 14.2-kg domestic LPG cylinder used by households.
HT reported on Tuesday that consumers were unlikely to see an immediate reduction in retail auto fuel prices, as state-run refiners would first seek to recover earlier losses while the government may also recoup part of the fiscal cost, estimated at about ₹1.23 lakh crore, incurred in shielding consumers from higher global prices.
State-run OMCs, however, cut the price of commercial LPG by ₹183.50 per 19-kg cylinder, bringing the effective price in Delhi down to ₹2,930 from ₹3,113.50. Commercial LPG prices vary across cities depending on transportation costs and local taxes. These cylinders are primarily used by commercial establishments such as hotels and restaurants.
The price of 5-kg free-trade LPG (FTL) cylinders, also classified as non-domestic LPG, was reduced by ₹13 per refill. A 5-kg FTL cylinder in Delhi will now cost ₹808.50.
Public sector oil companies also lowered ATF prices for domestic airlines by ₹5 per litre with effect from Wednesday. The effective ATF price now stands at ₹110 per litre, or ₹1.10 lakh per kilolitre, the executives said.