New Delhi: 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 Rs 58.50 per cylinder, reflecting shifts in international benchmark rates. After three rounds of price cuts, aviation turbine fuel (ATF) price was increased by Rs 6,271.5 per kilolitre, or 7.5 per cent, to Rs 89,344.05 per kl 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 installments since April. ATF price was last reduced by Rs 2,414.25 per kl (2.82 per cent) to Rs 83,072.55 per kl on June 1. Prior to that, rates were cut by 4.4 per cent (Rs 3,954.38 per kl) on May 1 and a steep reduction of 6.15 per cent (Rs 5,870.54 per kl) 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 price hike. The ATF price in Mumbai was hiked to Rs 83,549.23 per kl from Rs 77,602.73 per kl, while those in Chennai and Kolkata were increased to Rs 92,526.09 and Rs 92,705.74 per kl, respectively. Rates differ from city to city depending on incidence of local taxes such as VAT. Alongside, oil firms reduced the price of commercial LPG by Rs 58.5 per 19-kg cylinder. Commercial LPG now costs Rs 1,665 in the national capital and Rs 1,616.50 in Mumbai. This is the fourth straight reduction in commercial LPG rates. Prices were last reduced by Rs 24 per 19-kg cylinder on June 1. Prior to that a Rs 14.50 cut on May 1 and a Rs 41 per cylinder reduction was effected on April 1. In all, prices have been cut by Rs 138 per bottle since April. While 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 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 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.