India is facing a fresh wave of price hikes as the Gulf crisis pushes up fuel costs across aviation and commercial sectors. Aviation turbine fuel (ATF) prices have increased for the second consecutive month, while commercial LPG cylinders have become more expensive from September 1. The disruptions in the Strait of Hormuz continue to strain energy supplies, driving up costs for businesses and consumers alike.
ATF Prices Rise 33 Percent Since February
ATF prices have risen for the second straight month following the Gulf crisis. Prices were previously increased on August 1 as well. Fuel accounts for roughly 40 percent of total airline operating expenses. The actual impact on ticket fares will depend on airline costs, demand and market competition.
The US-Israel and Iran conflict that began in February has severely disrupted crude oil supply. ATF prices have surged about 33 percent since February. Several air routes saw sharp fare increases during the conflict period.
Commercial LPG Cylinder Gets Costlier
The 19 kg commercial LPG cylinder used in hotels and restaurants has been hiked by Rs 9.50 to Rs 2,747.50. The 5 kg LPG cylinder price has also increased by Rs 2 to Rs 764. This price increase comes after two consecutive months of cuts. In August, the 19 kg cylinder saw a reduction of Rs 192, while July recorded a cut of Rs 183.50.
The shutdown of the Strait of Hormuz has worsened the supply situation. Indian Oil Corporation had earlier ramped up LPG production by 30 percent to manage the crisis.
Mumbai Milk Price Crosses Rs 100 Per Litre
Adding to the inflation burden, Mumbai milk producers have raised wholesale prices by Rs 9 per litre. Milk prices in the Mumbai metropolitan area have risen from Rs 93 to Rs 102 per litre. Farm-supplied retail milk could reach Rs 110 per litre. This increase is expected to impact tea stalls, sweet shops and small businesses, especially ahead of the festive season. Earlier, Maharashtra’s largest cooperative dairy union Gokul had raised buffalo milk prices by Rs 2 to Rs 78 per litre.
