ATF Cut by Rs 5/Litre to Rs 110, Nayara Slashes Petrol and Diesel Prices

A decline in international crude oil prices following the easing of tensions in West Asia has started bringing relief to consumers across multiple sectors. On Wednesday, fuel costs moved lower for airlines, commercial LPG users and motorists, with Nayara Energy becoming the first fuel retailer in over two years to reduce petrol and diesel prices.

Nayara Energy announced a Rs 5 per litre cut in petrol prices and a Rs 3 per litre reduction in diesel prices across its network of more than 7,000 fuel stations nationwide. The move reverses the price hike introduced on March 26, when the conflict involving Iran had pushed global oil prices sharply higher.

In contrast, the three state run oil marketing companies, Indian Oil Corporation (IOC) , Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) , have kept retail fuel prices unchanged. Petrol in Delhi continues to retail at Rs 102.12 per litre, while diesel remains at Rs 95.20 per litre. These companies had collectively increased fuel prices by Rs 7.50 per litre through several revisions during the second half of May. However, the actual prices at Nayara outlets will continue to vary from state to state because of differences in VAT and local taxes.

According to industry sources, the price reduction by Nayara Energy was supported by the successful completion of maintenance work at its Vadinar refinery in Gujarat , which is now operating at full capacity.

The aviation sector also received some relief as the price of Aviation Turbine Fuel (ATF) was reduced by Rs 5 per litre , marking its first cut since fuel prices surged due to the West Asia crisis. In Delhi, ATF now costs around Rs 110 per litre . The reduction comes after the government introduced an ATF price stabilisation scheme last month, fixing a benchmark rate of Rs 86.32 per litre for up to three years. Under the scheme, the government compensates oil companies through interest free advances when prices exceed the benchmark and recovers excess gains when prices fall below it. It is still unclear how many airlines have joined the programme.

Commercial users also benefited from a sharp reduction in 19 kg commercial LPG cylinder prices. The price was cut by Rs 183.50 , bringing it down to Rs 2,930, the first reduction this year after rates had climbed to a record Rs 3,113 last month. The 5 kg Free Trade LPG cylinder became cheaper by Rs 13, now costing Rs 808.50. However, the price of the 14.2 kg domestic LPG cylinder remains unchanged at Rs 942.

Meanwhile, the Finance Ministry revised the windfall tax structure on petroleum exports with effect from Wednesday. The tax on petrol exports has been increased from Rs 1.50 to Rs 4 per litre, while duties on diesel and ATF exports have been reduced from Rs 14 to Rs 8.50 per litre and from Rs 12.50 to Rs 7.50 per litre, respectively. The government clarified that domestic excise duties remain unchanged.

State owned fuel retailers continue to revise ATF and commercial LPG prices every month based on international fuel benchmarks and currency exchange rates. The latest reductions reflect the cooling of global energy markets after geopolitical tensions eased, providing welcome relief to businesses and consumers alike.