Jet fuel price was on Monday hiked by over one per cent, the second straight monthly increase in rate coming on the back of firming global prices.
The price of Aviation Turbine Fuel (ATF) was hiked by Rs 677.1 per kilolitre, or 1.07 per cent, to Rs 63,472.22 per kl in the national capital, according to price notification issued by state-owned oil firms. The increase comes on the back of a steep 8.1 per cent (Rs 4,734.15 per kl) hike in rates effected on March 1.
Simultaneously, the price of non-subsidised cooking gas (LPG) was increased by Rs 5 per 14.2-kg cylinder. It now costs Rs 706.50 in the national capital. This is the second straight increase in LPG rate. Price was hiked by Rs 42.5 per cylinder on March 1.
The hike will add to the burden of cash strapped airlines that are already reeling under pressure from cut-throat competition in the sector. Non-subsidised LPG is the gas that consumer buys after exhausting their quota of 12 cylinders of 14.2-kg at sub-market or subsidised rates. Price of subsidised LPG was almost unchanged at Rs 495.86.
LPG, as well as ATF prices, are revised on 1st of every month based on the average international rate for benchmark fuel and foreign exchange rate in the preceding month. Also, the price of kerosene sold through the public distribution system (PDS) was increased to Rs 32.54 per litre from Rs 32.24.
This is in accordance with the 2016 decision to raise rates by 25 paise a litre every month till subsidy on the fuel is eliminated. Non-subsidised kerosene costs Rs 64,460.83 per kl (Rs 64.46 per litre) in the national capital.