New Delhi: Jet fuel, or aviation turbine fuel (ATF), prices were cut on Tuesday by a marginal 1.2%, the third reduction in three months, while rate of non-subsidized cooking gas (LPG) was hiked by ₹ 61.50 per cylinder.
ATF prices in Delhi were cut by ₹ 526.2 per kilolitre (kl), or 1.2%, to ₹ 44,320.32 per kl, oil companies announced on Tuesday. In three reductions, ATF price has been cut by ₹ 2,914.98 per kl. Rates vary from airport to airport depending on the local sales tax or value-added tax (VAT). Jet fuel constitutes over 40% of an airline’s operating costs and the price cut will bring relief to the cash-strapped carriers.
No immediate comment was available from airlines on the impact of price reduction on passenger fares.
Simultaneously, oil firms have also raised the prices of non-subsidized LPG, which consumers buy after exhausting their quota of subsidized cooking fuel, by ₹ 61.50 per 14.2kg bottle. Non-subsidized cooking gas (LPG) now costs ₹ 606.50 per cylinder in Delhi as against ₹ 545 till Monday. This is the second straight increase in non-subsidized LPG rates. Prices were hiked by ₹ 27.5 on 1 November.
Subsidized LPG costs ₹ 417.82 per 14.2kg cylinder in Delhi. Officials said the hike in LPG rates was due to firming global rates which has also led to payout on the subsidized cooking gas to go up from ₹ 127.18 per 14.2kg cylinder to ₹ 188.68. This is the subsidy that government gives to domestic consumers directly in their bank account to enable them to buy 12 cylinders of 14.2kg at market rate.
The three fuel retailers—Indian Oil Corp. Ltd, Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd—revise jet fuel prices and non-subsidized LPG rates once a month.