Non-subsidised LPG price rises Rs 49.5, ATF rate falls by 10%

NEW DELHI: ATF or jet fuel price was on Friday slashed 10% but rates of non-subsidised cooking gas LPG were hiked by Rs 49.5 per cylinder on global trends. Also, rates of non-subsidised kerosene were cut by Rs 1.05 per litre to Rs 43.19 a litre.

Aviation Turbine Fuel (ATF) price in Delhi was reduced by Rs 4,428 per kilolitre (kl) or 9.99% to Rs 39,892.32 per kl, oil companies announced on Friday. This is the second reduction in a row. Prices were cut by 1.17% on December 1.

Rates vary at different airports because of differential local sales tax or value-added tax ( VAT). Jet fuel constitutes over 40% of an airline's operating costs and the price cut will reduce the financial burden on cash-strapped carriers. No immediate comment was available from airlines on the impact of price reduction on passenger fares.

Simultaneously, the oil firms raised prices of non-subsidised LPG, which consumers buy after exhausting their quota of subsidised cooking fuel, by Rs 49.5 per 14.2-kg bottle. Non-subsidised cooking gas (LPG) now costs Rs 657.50 in Delhi.

This is the third hike in rates in as many months. Non-subsidised LPG price was last hiked by Rs 61.50 on December 1. Prior to that, rates were increased Rs 27.5 per cylinder on November 1.

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 Rs 419.33 per 14.2-kg cylinder in Delhi.

Also, the price of non-subsidised kerosene, available outside the ration shop, has been cut (rpt) cut to Rs 43,194.82 per kl (Rs 43.19 a litre) from Rs 44,246.47 per kl.

This is the third reduction in rate in one month. Prior to this, price of non-subsidised or non-PDS kerosene were cut by about 25 paise on December 1 and 50 paise on December 16.

Subsidised kerosene currently costs Rs 14.96 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.