Non-subsidised LPG, kerosene, jet fuel to cost more | business | Hindustan Times
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Non-subsidised LPG, kerosene, jet fuel to cost more

business Updated: May 02, 2016 09:16 IST
Non-subsidised gas

A technician attaches a jet fuel supply pipe to an outlet in the tarmac at an airport. Aviation Turbine Fuel (ATF) or jet fuel prices were hiked by 1.5%.(Reuters Photo)

After petrol and diesel, rates of non-subsidised cooking gas, non-PDS kerosene and aviation turbine fuel (ATF) were raised on Sunday in line with global trends.

Petrol prices were increased on Saturday night by Rs 1.06 a litre -- to Rs 62.19 per litre in Delhi -- and diesel by Rs 2.94 to Rs 50.95 a litre.

The increase was followed up on Sunday with nearly Rs 3 per litre hike in the prices of non-PDS kerosene, according to state- owned oil companies.

Kerosene sold to non-ration card segment outside the subsidised public distribution system (PDS) will cost Rs 49,109.05 per kilolitre (kl) or Rs 49.1 a litre in Delhi against Rs 46,172.13 per kl previously.

Oil firms raised prices of non- subsidised LPG, which consumers buy after exhausting their quota of 12, by Rs 18 per 14.2-kg cylinder.

Non-subsidised cooking gas (LPG) now costs Rs 527.50 in Delhi as against Rs 509.50 previously. The hike comes on the back of three straight monthly reductions. Prices were last cut by Rs 4 on April 1. Rates were reduced by Rs 61.50 on March 1 and Rs 82.5 per 14.2-kg bottle on February 1.

Subsidised LPG costs Rs 419.15 per 14.2-kg cylinder in Delhi.

Aviation Turbine Fuel (ATF) or jet fuel prices were hiked by 1.5% on Sunday.

ATF prices in Delhi were raised by Rs 627 per kilolitre, or 1.48%, to Rs 42,784.01 per kl. The hike comes on the back of of a steep 8.7% or Rs 3,371.55 per kl hike on April 1.

Prior to that, rates were hiked by a steep 12%, or Rs 4,174.49, on March 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 cost and the price increase will add to the financial burden of cash-strapped carriers.

Airlines have not yet commented on the impact of the price increase on passenger fares.

The three fuel retailers -- Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum -- revise jet fuel and non-subsidised LPG prices on the first day of every month, based on the average international price in the preceding month.

The ATF price cut on March 10 was on account of change in taxation.