New Delhi: Jet fuel prices were hiked by a steep 7.5% on Monday and rates of non-subsidised cooking gas (LPG) by Rs 10.50 per cylinder in step with global firming of rates.
Price of aviation turbine fuel (ATF), or jet fuel, in Delhi was raised by Rs 3,744.08 per kilolitre (kl), or 7.54%, to Rs 53,353.92, oil companies announced on Monday.
On May 1, ATF price was hiked by a marginal Rs 272 per kl or 0.5% to Rs 49,609.84.
Following global trends, the price of non-subsidised or market-priced domestic cooking gas (LPG) was hiked to Rs 626.50 per 14.2-kg cylinder in Delhi from Rs 616 till Sunday.
The price hike comes on the back of Rs 5 per 14.2-kg cut in rates affected 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 as 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.
While the market priced or non-subsidised 14.2-kg cylinder will cost Rs 626.50 from Monday, the in 5-kg pack will cost Rs 318.50.
Following similar trends, rates of market-priced 19 kg LPG cylinder has 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% 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.