OMCs cut ATF price by 1.2%, hike price of non-subsidised LPG by Rs61.5 per cylinder

State-run oil marketing companies today announced a marginal 1.2 per cent reduction in the price of aviation turbine fuel (ATF), the third reduction in as many months, while at5 the same time raising the price of non-subsidised cooking gas (LPG) by Rs61.50 a cylinder.

ATF price in Delhi was cut by Rs526.2 per kilolitre (kl), or 1.2 per cent, to Rs44,320.32 per kl from Rs44,846.82 per kl, oil companies announced today.

OMCS have reduced ATF price by Rs2,914.98 per kl in three successive monthly reductions since October. ATF prices vary from airport to airport depending on the local sales tax or value-added tax (VAT).

Jet fuel constitutes over 40 per cent of an airline's operating costs and the price cut will bring relief to the cash-strapped carriers.

However, airlines did not immediately make any comment on the possible impact of price reduction on passenger fares.

Simultaneously, oil firms have also raised the prices of non-subsidised LPG, which consumers buy after exhausting their quota of subsidised cooking fuel, by Rs61.50 per 14.2-kg bottle.

Non-subsidised cooking gas (LPG) now costs Rs 606.50 per cylinder in Delhi as against Rs545 till yesterday.

This is the second straight increase in non-subsidised cooking gas (LPG) rates. Prices were hiked by Rs27.5 on 1 November.

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.

Subsidised LPG costs Rs417.82 per 14.2-kg cylinder in Delhi.

Officials said the hike in LPG rates was due to firming global rates which has also led to payout on the subsidised cooking gas go up from Rs127.18 per 14.2-kg cylinder to Rs188.68.

This is the subsidy that government gives to domestic consumers directly in their bank account to enable them to buy 12 cylinders of 14.2 kg at market rate.

The three fuel retailers - Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum - revise jet fuel prices and non-subsidised LPG rates once a month.