Economy

Non-subsidised LPG price hiked by ₹16.50 a cylinder; ATF by 0.6%

PTI New Delhi | Updated on July 01, 2014 Published on July 01, 2014

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Price of non-subsidised cooking gas (LPG) was today hiked by ₹16.50 per cylinder and that of jet fuel by over half-a-per cent after international oil prices surged due to the ongoing Iraq crisis.

The increase in rates of non-subsidised LPG and ATF accompanies the ₹1.69 a litre hike in petrol and ₹0.50 a litre in diesel announced yesterday.

The price of non-subsidised LPG, which customers buy after using up their quota of 12 subsidised cylinders, was raised by ₹16.50 per 14.2-kg cylinder, the first hike in six months.

Each non-subsidised 14.2-kg cooking gas cylinder will now cost ₹922.50 in Delhi, up from ₹906, according to Indian Oil Corp (IOC), the nation’s largest oil firm.

Non-subsidised LPG rates were last month cut by ₹23.50 per cylinder.

A subsidised LPG cylinder in Delhi costs ₹414.

Today’s hike breaks the declining trend that started in February with a ₹107 cut in rates to ₹1,134 per cylinder.

It was followed by a ₹53.5 per cylinder reduction in March to ₹1,080.50, by ₹100 to ₹980.50 in April, by ₹52 in May and by ₹23.50 cut last month.

IOC said losses on LPG have risen to ₹449 per subsidised cylinder from ₹432.71 in the previous month. The loss was ₹762.50 in January.

Separately, the price of jet fuel or aviation turbine fuel (ATF), at Delhi was increased by ₹413.78 per kilolitre (kl), or 0.6 per cent, to ₹70,161.76 per kl.

The increase follows three straight monthly reductions, the last one of ₹1,285.89 per kl, or 1.81 per cent, which came into effect on June 1.

In Mumbai, jet fuel costs ₹72,411.21 per kl as against ₹71,940.36 per kl previously, IOC said. The rates vary because of differences in local sales tax or VAT.

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

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

The three fuel retailers – IOC, Hindustan Petroleum Corp and Bharat Petroleum Corp – revise jet fuel and non-subsidised LPG prices on the first of every month, based on the average international prices in the preceding month.

Published on July 01, 2014
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