Diesel, ATF prices hiked, non-subsidised LPG to cost less

State-run fuel retailers have decided to increase the retail selling price of diesel by Rs0.50 per litre and that of aircraft turbine fuel (ATF) or jet fuel by 5.5 per cent even as the oil marketing companies (OMCs) announced a Rs42 per cylinder reduction in the price of non-subsidised cooking gas (LPG).

The price hike, effective mid night of 30 September / 1 October 2015 makes diesel costlier across the country, with the price of diesel in Delhi going up to Rs44.95 per litre.

However, the OMCs have reduced the price of non-subsidised cooking gas LPG by Rs42 per cylinder.

This is the fourth reduction in rates in as many months. Non-subsidised LPG price was last cut by Rs25.50 on 1 September. Prior to that rates were cut by Rs23.50 on 1 August and by Rs18 per cylinder to Rs608.50 on 1 July.

Non-subsidised or market-priced LPG is one that consumers buy after exhausting their quota of 12 bottles of 14.2-kg each at subsidised rates in a year.

ATF or jet fuel price was Thursday hiked by 5.5 per cent, with its price in Delhi going up by Rs2,245.92 per kilolitre (kl), or 5.48 per cent, to Rs43,184.16 per kl, oil companies announced today.

The hike comes after a steep 11.7 per cent or Rs5,469.12 per kl cut in rates to Rs40,938.24 per kl from 1 September, the third in straight monthly reduction. Prior to that jet fuel rate was cut by 9.4 per cent to Rs46,407.36 on 1 August and by Rs2,086.56 per kl to Rs51,267.36 on 1 July.

Jet fuel constitutes over 40 per cent of an airline's operating costs and the price increase will raise the financial burden on cash-strapped carriers.