ATF prices up 5.5%; non-subsidised LPG down Rs 11/ cylinder

Aviation turbine fuel (ATF) price was on Friday hiked by 5.5 per cent for the fifth month in a row, but that of non-subsidised cooking gas (LPG) was cut by INR 11 per cylinder, in line with global trends.

ATF, or jet fuel price, in Delhi was increased by INR 2,557.7 per kilolitre (kl), or 5.47 per cent, to INR 49,287.18, the oil companies announced on Friday. This is the fifth straight monthly increase in rates -- the last being on June 1 when prices were hiked by a steep 9.2 per cent, or INR 3,945.47, to INR 46,729.48/kl.

In the five increases, ATF rates have gone up by 25 per cent, or INR 9,985.87, per kl since March. But the fuel used in aeroplanes is still cheaper than petrol and diesel. A litre of petrol in Delhi costs INR 64.76 a litre and diesel is priced at INR 54.70 compared with INR 49.28 a litre price of ATF. This is mainly because the government took away most of the gains arising out of the drop in international oil prices by way of raising excise duties on auto fuels.

Jet fuel constitutes over 40 per cent of an airline’s operating cost and the latest price increase will add to the financial burden of cash-strapped carriers.