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Photo: Pradeep Gaur/Mint
Photo: Pradeep Gaur/Mint

Jet fuel price hiked by 9.2%; non-subsidized LPG by Rs21 per cylinder

The hike comes on the back of 1.5% increase effected on 1 May and a steep Rs3,371.55 (8.7%) hike on 1 April

New Delhi: Aviation turbine fuel (ATF) or jet fuel price was on Wednesday hiked by a steep 9.2%, while that of non-subsidized cooking gas was raised by 21 per cylinder.

In the fourth straight monthly increase in rates on global cues, ATF price in Delhi was increased by 3,945.47 per kilolitre, or 9.2%, to 46,729.48 per kilolitre, oil companies announced on Wednesday.

The hike comes on the back of 1.5% increase effected on 1 May and a steep 3,371.55 (8.7%) hike on 1 April. Prior to that, rates were hiked by a steep 12%, or by 4,174.49, on 1 March.

Rates vary at different airports because of differential local sales tax or value added tax (VAT).

Jet fuel constitutes over 40% of an airline’s operating cost and the latest price increase will add to the financial burden of cash-strapped carriers. No immediate comment was available from airlines on the impact of the price increase on passenger fares.

Simultaneously, the oil firms raised prices of non-subsidized LPG (liquefied petroleum gas), which consumers buy after exhausting their quota of 12, by 21 per 14.2kg cylinder, the second monthly increase in rates.

Non-subsidized cooking gas now costs 548.50 in Delhi as against 527.50 previously. The hike comes on the back of a 18 per cylinder increase in price on 1 May. Subsidized LPG costs 419.18 per 14.2kg cylinder in Delhi.

The three fuel retailers—Indian Oil Corporation Ltd, Hindustan Petroleum Ltd and Bharat Petroleum Ltd—revise jet fuel and non-subsidized LPG prices on the first day of every month, based on the average international price in the preceding month.

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