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The new year has ushered upon us, and a new set of developments has come to pass. On January 1, 2025, Oil Marketing Companies or OMCs, announced a cut in the prices of commercial LPG cylinders and, crucially, Aviation Turbine Fuel or ATF.

ATF and LPG Prices Cut

The market forces slashed the price of ATF by by Rs 1,401 per kilolitre. Meanwhile, the price of the commercial LPG cylinder (19 kg) has been cut by Rs 14.5.

When it comes to commercial LPG cylinders, this reduction in prices comes to pass after a series of spikes in recent months.

In December itself, the price of the aforementioned cylinder was hiked by Rs 16.5.

Relief After Spikes

This decrease in cylinder price is expected to bring the prices of cylinder in Mumbai to Rs 1,756.5. In the National Capital Delhi, the price of the cylinder goes down to Rs 1,804.

It needs to be noted, that the prices of the 14 kg LPG cylinder used in households will remain unchanged for now.

When it comes to the crucial Aviation Turbine Fuel or ATF, the prices have been brought down by Rs 1,401 per kilolitre, bringing the price of ATF down to Rs 90,455.47 per kilolitre in Delhi.

Here, ATF does not come under the GST regime, therefore, the price of the commodity would vary depending upon the state, where the airline is based or has to refuel itself.

As per a Mint report, this relief comes to pass after a hike in the price of ATF in December's monthly revision. There was in increase of Rs 1,318.12 per kilolitre then.

Whom Does This Affect?

This change in price, when it comes to LPG cylinders affects restaurant and other establishments of small and medium-scale enterprises that produce perishable goods.

When it comes to ATF, amidst the debate over ATF's inclusion in the GST regime, the price cut may benefit airlines. Whether it aids end customers, ie passengers is something that remains to be seen.