Jet fuel (ATF) prices saw a sharp 7.5 Percent increase on Tuesday, now costing Rs 89,344.05 per kilolitre in the national capital. This rise, following three consecutive monthly cuts since April, reverses half of those previous reductions. Conversely, commercial LPG prices dropped by Rs 58.50 per cylinder due to changing international rates
Bharat Petroleum Corporation. File Pic.
The price of jet fuel (ATF) was sharply increased by 7.5 per cent on Tuesday, while the cost of LPG used in commercial establishments was reduced by Rupees 58.50 per cylinder, reflecting shifts in international benchmark rates.
After three rounds of price cuts, aviation turbine fuel (ATF) price was increased by Rupees 6,271.5 per kilolitre, or 7.5 per cent, to Rupees 89,344.05 per kilolitre in the national capital – home to one of the busiest airports in the country, according to state-owned fuel retailers. The increase amounts to half of the total reduction implemented over three monthly instalments since April.
ATF price was last reduced by Rupees 2,414.25 per kilolitre (2.82 per cent) to Rupees 83,072.55 per kilolitre on June 1. Prior to that, rates were cut by 4.4 per cent (Rupees 3,954.38 per kilolitre) on May 1 and a steep reduction of 6.15 per cent (Rupees 5,870.54 per kilolitre) on April 1.
The increase in ATF price is in line with the spurt in international oil rates that followed Israel's attack on Iran last month. This increase will add to the burden on commercial airlines, for whom fuel makes up for almost 40 per cent of the operating cost. No immediate comments could be obtained from the airlines on the impact of the price hike.
The ATF price in Mumbai was hiked to Rupees 83,549.23 per kilolitre from Rupees 77,602.73 per kilolitre, whilst those in Chennai and Kolkata were increased to Rupees 92,526.09 and Rupees 92,705.74 per kilolitre, respectively. Rates differ from city to city depending on the incidence of local taxes such as VAT.
Alongside, oil firms reduced the price of commercial LPG by Rupees 58.5 per 19-kilogramme cylinder. Commercial LPG now costs Rupees 1,665 in the national capital and Rupees 1,616.50 in Mumbai. This is the fourth straight reduction in commercial LPG rates. Prices were last reduced by Rupees 24 per 19-kilogramme cylinder on June 1. Prior to that, a Rupees 14.50 cut on May 1 and a Rupees 41 per cylinder reduction was effected on April 1. In all, prices have been cut by Rupees 138 per bottle since April.
Whilst oil prices have been on the boil, benchmark LPG rates have softened because of low demand during summer months. Prices of ATF and LPG differ from state to state depending on the incidence of local taxes, including VAT.
The rate of cooking gas used in domestic households, however, remained unchanged at Rupees 853 per 14.2-kilogramme cylinder. The price of the domestic LPG was hiked by Rupees 50 per cylinder in April.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revise prices of ATF and cooking gas on the first of every month based on the average price of benchmark international fuel and foreign exchange rate.
Domestic rates of petrol and diesel continue to remain frozen. Rates were cut by Rupees 2 per litre in mid-March last year, ahead of the general elections. Petrol costs Rupees 94.72 a litre in Delhi, whilst diesel is priced at Rupees 87.62.
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