New Delhi: Jet fuel or aviation turbine fuel (ATF) price was hiked on Sunday by a steep 6% on firming international rates, the third straight increase in rates since August.
ATF will now cost Rs53,045 per kilolitre (kl) in Delhi, Rs3,025 per kl more than Rs50,020 previously, according to a price hike notification by Indian Oil Corp., the nation’s biggest fuel retailer.
This the third consecutive monthly hike in ATF price, the last being by 4% (Rs1,910 per kl) on 1 September. Also, cooking gas (LPG) price was hiked by Rs1.50 per cylinder in line with the government decision to raise rates every month to eliminate subsidies by March.
A subsidised 14.2kg LPG cylinder will from Sunday cost Rs488.68 in Delhi as against Rs487.18 previously, IOC said. The hike comes on back of over Rs7 per cylinder increase effected from 1 September. Oil minister Dharmendra Pradhan had on July 31 told the Lok Sabha that the government had asked state-run oil firms to raise subsidised cooking gas (LPG) prices by up to Rs4 per cylinder every month to eliminate all the subsidies by March next year.
Rates were, however, raised by Rs2.31 per cylinder on 1 August and the oil companies effected a large hike on 1 September to equalise that, officials said. Since the implementation of the policy of monthly increases from July last year, subsidised LPG rates have gone up by over Rs69.50 per cylinder.
A 14.2kg LPG cylinder was priced at Rs419.18 in June 2016. The government had previously asked IOC, Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) by Rs2 per 14.2kg cylinder per month (excluding VAT).
The quantum has now been doubled so as to bring down the subsidy to nil. Every household is entitled to 12 cylinders of 14.2kg each at subsidised rates in a year. Any requirement beyond that is to be purchased at market price. The price of non-subsidised LPG or market priced cooking gas has also been hiked by Rs1.50 to Rs599 per bottle.
Rates at the last revision on 1 September were hiked by Rs73.5 to Rs597.50 per bottle. State-owned oil firms revise rates of LPG and ATF on 1st of every month based on average oil price and foreign exchange rate in the previous month.
Today’s hike in the LPG price is fifth since the 30 May order of the oil ministry to raise rates by Rs4 per cylinder every month. There are as many as 18.11 crore customers of subsidised LPG in the country. These include over 3 crore poor women who were given free connections during the last one year under the Pradhan Mantri Ujjwala Yojna. There are another 2.66 crore users of non-subsidised cooking gas.
