Non-subsidised LPG to cost Rs50 more; Jet fuel price cut by 10%
02 January 2016
State-run fuel marketing companies have increased the price of non-subsidised cooking gas (LPG by Rs49.50 per cylinder while slashing the price of jet fuel (aviation turbine fuel) by 10 per cent.
Non-subsidised LPG now costs Rs657.50 in Delhi after the third hike in rates in as many months. Non-subsidised LPG price was last hiked by Rs61.50 on 1 December. Prior to that, rates were increased by Rs27.5 per cylinder on 1 November.
Domestic consumers have to opt for non-subsidised or market-priced LPG after they exhaust their annual quota of 12 bottles of 14.2kg each at subsidised rates.
Along with the 10 per cent reduction in ATF price, OMCs also reduced rates on non-subsidised kerosene by Rs1.05 per litre to Rs43.19 a litre.
This is the third reduction in open market kerosene rate in one month. Prior to this, prices of non-subsidised or non-PDS kerosene were cut by about 25 paise on 1 December and 50 paise on 16 December.
Subsidised kerosene currently costs Rs14.96 a litre in Delhi.
The three fuel retailers - Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum - revise jet fuel prices, non-subsidised LPG and non-subsidised kerosene rates on the first day of every month, based on the average international price in the preceding month.
ATF price in Delhi is down Rs4,428 or 9.99 per cent per kilolitre (kl) at Rs39,892.32 per kl, oil companies announced on Friday.
This is the second reduction in a row. Prices were cut by 1.17 per cent on 1 December.
Rates vary at different airports because of differential local sales tax or value-added tax (VAT).
Jet fuel constitutes over 40 per cent of an airline's operating cost and the price cut will reduce the financial burden on cash-strapped carriers.