NEW DELHI, Nov 1: Aviation turbine fuel (ATF) prices were hiked by about 1 per cent while commercial LPG rates cut marginally by Rs 5 per cylinder on Saturday in the monthly revision in fuel prices in line with global benchmarks.
Jet fuel (ATF) price was increased by Rs 777 per kilolitre, or 0.8 per cent, to Rs 94,543.02 per kl in the national capital – home to one of the busiest airports in the country, according to state-owned fuel retailers.
This is the second straight monthly increase in ATF rates. Prices were raised by Rs 3,052.5 per kl or 3.3 per cent on October 1. Prior to that rates were cut by 1.4 per cent (Rs 1,308.41 per kl) on September 1.
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The price hike will increase the burden on commercial airlines, for whom fuel makes up almost 40 per cent of the operating cost.
No immediate comments could be obtained from the airlines on the impact of the price change.
The ATF price in Mumbai was hiked to Rs 88,44.87 per kl from Rs 87,714.39 per kl, while those in Chennai and Kolkata were increased to Rs 98,089.68 and Rs 97,549.18 per kl, 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 used in hotels and restaurants by Rs 5 per 19-kg cylinder. Commercial LPG now costs Rs 1,590.50 in the national capital.
The reduction follows a Rs 15.50 per cylinder increase last month. Prior to that, rates were reduced on six occasions. In the six reductions, prices were cut by Rs 223 per bottle since April.
Oil prices have remained largely range-bound since the last revision.
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 Rs 853 per 14.2-kg cylinder. The price of the domestic LPG was hiked by Rs 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 day 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 Rs 2 per litre in mid-March last year, ahead of the general elections. Petrol costs Rs 94.72 a litre in Delhi, while diesel is priced at Rs 87.62. (PTI)
