Economy

Non-subsidised LPG price up by ₹50, ATF rises by 6.3%

PTI New Delhi | Updated on December 16, 2020

This is the second increase in rate this month

Cooking gas LPG price on Wednesday was increased by ₹50 per cylinder, the second hike in rate this month following firming of international prices.

Also, aviation turbine fuel (ATF) price was raised by a steep 6.3 per cent.

Non-subsidised LPG price was increased to ₹694 per 14.2-kg cylinder from ₹644 earlier, according to a price notification of state fuel marketing companies.

This is the second increase in rate this month. On December 1, price was hiked by a similar ₹50 per cylinder.

Also read: India marches towards 100 per cent access to LPG

Prior to that, the price had remained unchanged at ₹594 a cylinder since July. This was the same rate at which subsidised LPG refills are also sold.

Since May, most cooking gas customers have not received subsidies as the combination of international oil price collapse and domestic refill rate increases brought parity between subsidised and market rates.

A subsidised cooking gas cylinder was priced at ₹497 in Delhi in June 2019. Since then, prices have cumulatively gone up by ₹147.

However, the increase in rates this month would mean that the government will have to resume paying subsidies to consumers.

Rates of LPG are revised every fortnight.

Jet fuel price

Simultaneously, the price of jet fuel was hiked by ₹2,941.5 per kilolitre, or 6.3 per cent, in Delhi to ₹49,161.16 per kl.

This is the second increase in ATF price this month. Rates had gone up by 7.6 per cent (₹3288.38 per kl) on December 1.

Like LPG, ATF prices too are revised on the 1st and 16th of every month based on the average rate of benchmark international fuel and foreign exchange rate in the preceding fortnight.

Alongside an increase in the price of 14.2-kg LPG cylinders, rates of the 5-kg bottles were increased by ₹18 and those of the 19-kg cylinders by ₹36.50.

Households in India are allowed a maximum of 12 LPG cylinder purchases per year at subsidized rates. Cylinders have to be bought at full price at the time of purchase, and the subsidy is credited to the customer’s bank account by the government.

Non-subsidised LPG now costs ₹720.50 in Kolkata, ₹694 in Mumbai, and ₹710 in Chennai. Rates defer from State to State depending on the incidence of local sales tax or VAT.

Published on December 16, 2020

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