India increases jet fuel and commercial LPG prices in response to the Mideast crisis driving global surge

Indian fuel retailers increased jet fuel - and commercial liquefied petrol gas (LPG), prices on Wednesday. This was in response to a sharp rise in global prices caused by the U.S./Israeli war on Iran.

India, the world's second largest LPG importer is battling the worst gas crisis it has seen in decades. The government is cutting gas supplies to industries so that households are not affected by shortages.

The Indian Oil Corporation website shows that domestic fuel retailers in New Delhi have increased the price of aviation turbine fuel to 104.927 rupees a kiloliter by 8.6% and commercial LPG to?2,078.50 per 19-kilogram container by 10.4%.

State-owned oil companies have, in consultation with the Ministry of Civil Aviation and to 'insulate domestic travel costs' from the significant increase in international prices a "partial increase" has been passed on to airlines. This was stated in a social media post by the Ministry.

The increase in price of 'commercial cylinders' is due to the'surge of 44% in the Middle Eastern benchmark Saudi Contract Price as 20-30% of global LPG supply are stuck at the Strait of Hormuz.

Imports accounted for approximately 60% of the country's total consumption of LPG or cooking gas last year. Around 90% of these imports were from the Middle East.

According to the Ministry, commercial cylinders are used by?hotels and industries for less than 10% of total LPG consumption?in the nation?and prices are reviewed on a month-to-month basis.

The ministry said that the 14.2-kg domestic gas prices were not changed to protect customers from a price increase.

India increased its domestic LPG production by 40 percent - to 50,000 tons per day compared with a demand of 80,000 tons. Indian companies have also secured 800,000 tonnes of LPG cargoes, from countries such as the U.S.A., Russia, Australia, and others. Sethuraman N.R. in New Delhi and Komal Salecha, in Bengaluru. Editing by Sonia Cheema & Thomas Derpinghaus.

(source: Reuters)