New Delhi, September 1, 2026: Aviation turbine fuel and commercial LPG prices have increased across India from September 1, raising operating costs for airlines, hotels, restaurants, caterers and other businesses.
State-owned oil marketing companies raised the price of aviation turbine fuel, or ATF, for domestic airlines by ₹6.28 per litre—an increase of 5.46%—to ₹121.28 per litre from ₹115.
This is the second consecutive monthly increase in jet-fuel prices. ATF had become ₹5 per litre costlier in August after a similar reduction in July.
Higher ATF Costs May Pressure Airlines
Jet fuel generally accounts for around 35–40% of an Indian airline’s operating expenses, making fuel-price changes an important factor in carriers’ profitability.
The latest increase is expected to raise costs for domestic airlines. Whether it results in higher passenger fares will depend on demand, competition, flight capacity and individual airline pricing strategies.
ATF and LPG prices are generally revised on the first day of each month based on international benchmark rates and currency movements. Final ATF prices can vary between states because of differences in local taxes, including value-added tax.
Commercial LPG Cylinder Becomes Costlier
The price of a 19-kg commercial LPG cylinder has also increased by approximately ₹9.50 to ₹11.50 across major cities.
The revised commercial LPG prices are:
- Delhi: ₹2,747.50
- Kolkata: ₹2,884
- Mumbai: ₹2,701
- Chennai: ₹2,916.50
- Bengaluru: ₹2,831
- Hyderabad: ₹2,996
- Patna: ₹3,029
Kolkata recorded an increase of ₹11.50, while the Delhi price rose by ₹9.50. Commercial cylinder rates differ by location because of transportation expenses and local taxes.
The 5-kg free-trade, non-domestic LPG cylinder has also become ₹2 costlier, rising from ₹762 to ₹764.
Domestic LPG Prices Unchanged
There is no change in the price of the 14.2-kg domestic LPG cylinder used in household kitchens. In Delhi, the domestic cylinder continues to cost ₹942.
This means the latest revision primarily affects commercial consumers such as hotels, restaurants, bakeries, roadside food outlets and catering businesses.
The commercial LPG increase comes after two consecutive monthly reductions. The price of a 19-kg cylinder in Delhi was reduced by ₹183.50 in July and ₹192 in August, following sharp increases earlier in the year.
Restaurants and Airlines Face Higher Costs
Although the latest commercial LPG increase is relatively modest, repeated fluctuations in fuel prices can affect small food businesses operating with narrow profit margins.
Restaurants and catering businesses may either absorb the additional cost or gradually pass it on through menu-price revisions. Airlines could also face pressure to increase fares or fuel-related charges if ATF prices remain elevated.
The direction of future prices will depend on international crude oil and LPG benchmarks, the rupee’s exchange rate and geopolitical developments affecting global energy supplies.
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