Price of aviation turbine fuel (ATF), or jet fuel, was reduced by 7.3% on Thursday (January 1, 2026), while commercial LPG rate was raised by ₹111 per cylinder, as state-owned oil marketing companies implemented their monthly price revisions aligned with global fuel benchmarks.
ATF price in Delhi was cut by ₹7,353.75 per kilolitre, or 7.3%, to ₹92,323.02 per kl, according to state-owned fuel retailers.
The reduction comes after three rounds of monthly price hikes. The rate was last raised by ₹5,133.75 per kl, or 5.4%, on December 1. Prior to that prices had risen by about 1% on November 1 and by 3.3% on October 1.
The cut announced on Thursday neutralises more than two-thirds of the price increase that happened since October 1.
The latest reduction is expected to ease pressure on airlines, for which fuel accounts for nearly 40% of operating costs.
No immediate comments could be obtained from the airlines on the impact of the price change.
In Mumbai, ATF price was revised ₹86,352.19 per kl, while prices in Chennai and Kolkata were cut to ₹95,770 and ₹95,378.02 per kl, respectively.
Fuel prices vary across cities due to local taxes.
Alongside, the price of a 19-kg commercial LPG cylinder used by hotels and restaurants was hiked by a steep ₹111 to ₹1,691.50 in Delhi.
The price increase comes on the back of two rounds of monthly reduction. Prices were last cut by ₹15.50 per 19-kg cylinder on December 1.
Prior to that the rate was reduced by ₹5 per cylinder.
Commercial LPG prices are now at their highest level since June last year.
Prices of domestic LPG, used in household kitchens for cooking, remained unchanged at ₹853 per 14.2-kg cylinder, following a ₹50 hike in April 2025.
Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum revise ATF and LPG prices on the first day of every month based on international benchmarks and the exchange rate.
While oil prices have moderated over the last one month, winter heating requirement have pushed up LPG rates in global markets.
Petrol and diesel prices continue to remain frozen after a ₹2 per-litre reduction in March last year; petrol currently costs ₹94.72 per litre in Delhi and diesel ₹87.62.
