Indian Oil Raises $76.55 Jet Fuel Charges — Mayday

mayday for foreign airlines came as Indian Oil Co. raised the price of jet fuel sold to foreign carriers by $76.55 per kilolitre, taking the total to $1,511.86 per kilolitre. Indian Oil also lifted liquefied petroleum gas prices for local industrial users while keeping household LPG prices unchanged.

Indian Oil and local LPG users

Indian Oil's move hits two different customers in different ways. Local industrial LPG users now face prices that are 47.8% more expensive, while households that depend on LPG for cooking keep the same price. Some 60% of Indian households rely on liquefied petroleum gas as their primary cooking fuel, and Indian authorities have been redirecting LPG supply from industrial users to household consumers to protect that supply.

Since February 28, India's LPG production has risen by 25% to 46,000 tons per day. Local output is on course to rise again to 50,000 tons daily after Nayara Energy's refinery restarts after seasonal maintenance this month.

Foreign airlines and jet fuel supply

The jet fuel increase lands as global shipments have dropped to a record low of 2.3 million tons, a shortage that has prompted flight cancellations and a rush to secure whatever supply is available. Foreign airlines buying Indian jet fuel now pay more in a market already described as tight.

The Strait of Hormuz remains part of the pressure on LPG supply, with 90% of all Indian LPG imports passing through the route. The war in the Middle East is also described as squeezing LPG supply, while Indian authorities are pushing for an expansion of city pipeline gas networks to replace LPG cylinders where possible.

For industrial users, the immediate calculation is simple: the higher LPG bill arrives now. For foreign airlines, the new fuel rate is already set at $1,511.86 per kilolitre, and the shortage in global jet fuel shipments is pushing carriers to compete for limited supply.