Aviation Turbine Fuel (ATF), or jet fuel, price was today hiked by 12 per cent but that of non-subsidised cooking gas LPG was slashed by Rs 61.5 per cylinder on global cues.
ATF price in Delhi was raised by Rs 4,174.49 per kilolitre (kl), or 11.88 per cent, to Rs 39,301.31 per kl, oil companies said today.
The hike comes on back of a steep 12 per cent cut in rates from February 1. The jet fuel prices on that day were reduced by Rs 4,765.5 per kl.
The hike today breaks the cycle of three consecutive price reductions. Rates were cut by 10 per cent on January 1.
Rates vary at different airports because of differential local sales tax or value-added tax (VAT).
Jet fuel constitutes over 40 per cent of an airline’s operating cost and the price increase will add to the financial burden on cash-strapped carriers.
No immediate comment was available from airlines on the impact of the price increase on passenger fares.
Simultaneously, the oil firms cut prices of non-subsidised LPG, which consumers buy after exhausting their quota of 12, by Rs 61.5 per 14.2-kg bottle.
Non-subsidised cooking gas (LPG) now costs Rs 513.50 in Delhi as against Rs 575 previously. This is the second reduction in rates. Prices on February 1 were cut by Rs 82.5 per 14.2-kg bottle.
Subsidised LPG costs Rs 419.33 per 14.2-kg cylinder in Delhi.
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.