Fuel Price Rollercoaster: ATF Slashed by 7% as Commercial LPG Costs Jump ₹111

New Year’s Day brought a mixed bag for fuel prices in India, with Aviation Turbine Fuel (ATF) prices cut sharply while commercial LPG cylinder rates spiked significantly, impacting airlines and businesses differently as the nation kicks off 2026.

State‑owned oil marketing companies revised fuel rates on January 1, 2026 in line with global oil benchmark trends, slashing the price of ATF (jet fuel) by around 7%, a move that provides some relief to airlines facing high operating costs. The reduction in ATF — the fuel used by commercial airlines — may help moderate ticket pricing pressure as carriers grapple with input cost volatility. 

On the flip side, the price of 19‑kg commercial LPG cylinders, widely used by hotels, restaurants and other service establishments, was increased by ₹111 per cylinder across major cities. In Delhi, the new rate rose to approximately ₹1,691.50, while Mumbai saw prices climb to around ₹1,642.50. Kolkata and Chennai recorded similar sharp upticks, reversing recent months of gradual price relief. 

This price hike comes after previous adjustments over the past months, including temporary cuts in commercial LPG rates followed by subsequent increases, reflecting the dynamic nature of crude oil and LPG market trends. Domestic LPG prices for household consumers, however, remain unchanged, offering some respite to average families. 

The contrasting revisions underscore how international crude oil fluctuations and currency movements directly influence key energy products in India, affecting sectors from commercial kitchens to air travel. Businesses that depend heavily on commercial LPG may face higher operating costs, potentially passing on some expenses to consumers, while airlines are expected to welcome the reduced ATF burden.

Industry analysts say the long‑term impact will depend on future crude price movements and foreign exchange trends, which continue to shape domestic fuel pricing decisions by oil marketing companies.