Jet fuel prices were hiked by a steep 7.5 per cent today and the rates of non-subsidised cooking gas (LPG) by Rs 10.50 per cylinder in line with the global trend.

Prices of aviation turbine fuel (ATF) or jet fuel in Delhi were raised by Rs 3,744.08 per kilolitre (kl) or 7.54 per cent to Rs 53,353.92, oil companies announced today.

On May 1, ATF prices were hiked by a marginal Rs 272 per kl or 0.5 per cent to Rs 49,609.84.

Following the global trend, prices of non-subsidised or market-priced domestic cooking gas (LPG) were hiked to Rs 626.50 per 14.2-kg cylinder in Delhi from Rs 616 till yesterday.

The price hike comes on the back of a Rs 5 per 14.2-kg cut in rates effected from May 1.

Non-domestic LPG, which consumers buy after exhausting their quota of 12 bottles of 14.2-kg each at subsidised rates, will cost Rs 626.50 against Rs 616 per 14.2-kg cylinder.

Households are entitled to 12 cylinders of 14.2-kg each or 34 bottles of 5-kg each at subsidised rates of Rs 417 or Rs 155, respectively in Delhi. Any requirement beyond this has to be bought at the market price.

The market priced or non-subsidised 14.2-kg cylinder will cost Rs 626.50 from today, while the 5-kg pack will cost Rs 318.50. Similarly, the rates of market-priced 19-kg LPG cylinder have been hiked to Rs 1,151 per bottle from Rs 1,134.

Rates vary from state-to-state depending on the incidence of local sales tax or VAT.

Jet fuel constitutes over 40 per cent of an airline’s operating costs and the price cut will reduce the financial burden on cash-strapped carriers.

No immediate comment was available from airlines on the impact of the price hike on passenger fares.

State-owned fuel retailers, Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise jet fuel and non-subsidised LPG prices on the first of every month based on average imported cost and rupee-dollar exchange rate. The same on petrol and diesel is done on a fortnightly basis.

Related Topics
comment COMMENT NOW