On January 1, 2026, a significant shift in fuel prices occurred as state-owned oil marketing companies adjusted their monthly rates. The aviation turbine fuel (ATF) price experienced a substantial 7% cut, while the commercial LPG rate saw an increase of ₹111 per cylinder. This adjustment was made in line with global fuel benchmarks.
In Delhi, the ATF price reduction amounted to ₹7,353.75 per kilolitre, resulting in a 7.3% decrease to ₹92,323.02 per kl. This reduction follows three rounds of monthly price hikes, with the previous increase of ₹5,133.75 per kl, or 5.4%, on December 1. Prior to that, prices had risen by approximately 1% on November 1 and by 3.3% on October 1.
The Thursday announcement effectively neutralizes more than two-thirds of the price hike that occurred since October 1. This reduction is expected to alleviate pressure on airlines, where fuel constitutes nearly 40% of operating costs.
However, the commercial LPG price in Delhi witnessed a steeper ₹111 hike, reaching ₹1,691.50 for a 19-kg cylinder. This increase follows two rounds of monthly reductions, with the previous cut of ₹15.50 per cylinder on December 1. Prior to that, the rate had been reduced by ₹5 per cylinder.
Commercial LPG prices are now at their highest level since June of the previous year. In contrast, domestic LPG prices, used in household kitchens, remained unchanged at ₹853 per 14.2-kg cylinder, following a ₹50 hike in April 2025.
Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum adjust ATF and LPG prices on the first day of every month based on international benchmarks and exchange rates. Despite recent oil price moderation, winter heating needs have driven up LPG rates in global markets.
Petrol and diesel prices remain frozen after a ₹2 per-litre reduction in March of the previous year. Petrol currently costs ₹94.72 per litre in Delhi, while diesel is priced at ₹87.62 per litre.
