Fuel Costs Dip Again: Third Straight Month of Relief
In a continued effort to align domestic fuel prices with global trends, India’s leading oil marketing companies have reduced the cost of aviation turbine fuel (ATF) and commercial LPG cylinders for the third consecutive month. The new pricing, which came into effect on *June 1, 2025*, offers a welcome break for industries heavily dependent on fuel—especially aviation and hospitality.
ATF Price Drops Significantly Across Key Cities
Aviation turbine fuel, a major component of airline operating expenses, saw a sharp reduction of *₹2,414.25 per kilolitre. This brings the price of ATF in Delhi to **₹83,072.55 per kiloliter, offering airlines some cushion amid volatile operating costs. In Mumbai, another major aviation hub, the revised rate now stands at **₹77,602.73 per kiloliter*.
In April and May, cuts of *6.15%* and *4.4%* respectively had already provided some temporary relief. With this latest reduction, Indian airlines—many of which operate under tight profit margins—may find a bit more breathing room.
Commercial LPG Cylinder Becomes More Affordable
In another important update for small and mid-sized businesses, the cost of *19-kg commercial LPG cylinders* has been trimmed by *₹24, bringing the new price to **₹1,723.50 in Delhi*. This change is specifically aimed at commercial users such as restaurants, hotels, and food service providers.
Price Adjustments Tied to Global Trends
These monthly fuel price revisions are carried out by state-run oil companies like *Indian Oil Corporation (IOC), **Hindustan Petroleum Corporation Ltd (HPCL), and **Bharat Petroleum Corporation Ltd (BPCL)*. Prices are reviewed and updated on the 1st of each month based on fluctuations in international crude oil rates, refining costs, and foreign exchange movements.
Global oil prices have seen a softening trend in recent weeks, influenced by weaker demand projections, economic slowdowns in key markets, and geopolitical uncertainties. This international easing has translated into lower domestic fuel prices, benefiting both consumers and businesses.
Industry Implications: Who Stands to Gain?
These repeated fuel price cuts come as a timely advantage for sectors battling high operational costs:
Airlines, which typically spend over 30% of their operating budget on fuel, can better manage ticket pricing and route expansions.
Restaurants, hotels, and food service providers, heavily reliant on commercial LPG, are expected to see marginal cost savings, which could support better pricing strategies in a highly competitive space.
While the reductions may not be drastic, the consistency of the downward trend is encouraging for industries that have faced relentless inflationary pressure over the last few years.
Summary:
India has implemented a fresh round of fuel price reductions for the third consecutive month, with aviation turbine fuel (ATF) lowered by ₹2,414.25 per kilolitre and commercial LPG cylinders by ₹24. Effective from June 1, 2025, these changes are designed to ease financial pressure on the aviation and hospitality sectors. The price cuts reflect falling international energy costs and are part of the standard monthly review by public-sector oil companies.
The image added is for representation purposes only
