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Business News/ Politics / Policy/  LPG price hiked by Rs16.50 per cylinder; ATF by 0.6%
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LPG price hiked by Rs16.50 per cylinder; ATF by 0.6%

Each non-subsidized 14.2kg cooking gas cylinder will now cost `922.50 in Delhi, up from `906, according to Indian Oil

The increase in rates of non-subsidized LPG and aviation turbine fuel (ATF) accompanies the `1.69 a litre hike in petrol and 50 paisa a litre in diesel announced on Monday. Photo: Pradeep Gaur/MintPremium
The increase in rates of non-subsidized LPG and aviation turbine fuel (ATF) accompanies the `1.69 a litre hike in petrol and 50 paisa a litre in diesel announced on Monday. Photo: Pradeep Gaur/Mint

New Delhi: Price of non-subsidized cooking gas (LPG) was on Tuesday hiked by 16.50 per cylinder and that of jet fuel by 0.6% after international oil prices surged due to the ongoing Iraq crisis.

The increase in rates of non-subsidized LPG and aviation turbine fuel (ATF) accompanies the 1.69 a litre hike in petrol and 50 paisa a litre in diesel announced on Monday.

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

Each non-subsidized 14.2kg cooking gas cylinder will now cost 922.50 in Delhi, up from 906, according to Indian Oil Corp. Ltd (IOC), the country’s largest oil firm. Non-subsidized LPG rates were last month cut by 23.50 per cylinder.

A subsidized 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 subsidized cylinder from 432.71 in the previous month. The loss was 762.50 in January.

Separately, the price of jet fuel or ATF, at Delhi was increased by 413.78 per kilolitre (kl), or 0.6%, to 70,161.76 per kl. The increase follows three straight monthly reduction, the last one of 1,285.89 per kl, or 1.81%, which came into effect on 1 June.

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% of an airline’s operating costs and the price hike will increase the financial burden of cash-strapped carriers.

No immediate comments were available from airlines on the impact of the price increase on passenger fares. The three fuel retailers—IOC, Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd—revise jet fuel and non-subsidized LPG prices on the first of every month, based on the average international prices in the preceding month.

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Published: 01 Jul 2014, 01:30 PM IST
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