State-run oil marketing companies (OMCs) on Monday announced a reduction in the prices of non-subsidised cooking gas and aviation turbine fuel (ATF), or jet fuel, following a fall in the international prices of crude oil and a strengthening of the rupee.
Accordingly, the price of a non-subsidised 14.2 kg cooking gas cylinder in Delhi, which customers buy after using up their quota of 12 subsidised cylinders, has been reduced by Rs23.50 per cylinder to Rs905 from Rs928.50 earlier.
This compares with the Rs414 charged on a subsidised gas cylinder.
The price of aviation turbine fuel (ATF) at Delhi was cut by Rs1,285.89 per kilolitre (or 1.81 per cent) to Rs69,747.98 per kl, Indian Oil Corp, the nation's largest fuel retailer, said in a release.
In Mumbai, jet fuel now costs Rs71,940.36 per kl against Rs73,306.89 per kl previously, IOC said. The rates may vary with the differences in local sales tax or VAT.
This is the third reduction in jet fuel rates since April. Declining international oil prices and the strengthening of the rupee against the US dollar have made imports cheaper.
Jet fuel constitutes over 40 per cent of an airline's operating costs and the price cut will ease the financial burden of cash-strapped carriers.
Cash-strapped airlines, however, did not make any immediate comments on the impact of the price cut on passenger fares.
Indian Oil said losses on LPG have come down to Rs432.71 per subsidised cylinder from Rs449.14 in the previous month.
OMCs revise jet fuel and non-subsidised cooking gas prices on the first of every month, based on the average international prices in the preceding month.
OMCs are now incurring combined daily under-recovery, or loss, of about Rs262 crore on the sale of diesel, kerosene and domestic cooking gas below cost.