New Delhi: Jet fuel or ATF price Friday was cut by 4.6 per cent, the second reduction in a month, while commercial cooking gas (LPG) rate was hiked by Rs 21 per 19-kg cylinder in line with international benchmarks.
However, the price of domestic LPG – used in household kitchens for cooking purposes – remained unchanged at Rs 903 per 14.2-kg cylinder.
Aviation turbine fuel (ATF) price was cut by Rs 5,189.25, or 4.6 per cent, in the national capital to Rs 1,06,155.67 per kl from Rs 1,11,344.92, according to a price notification of state-owned fuel retailers.
This is the second reduction in a month. Jet fuel price was cut by almost 6 per cent (Rs 6,854.25 per kl) November 1. The two rounds of reduction have wiped away almost a third of the Rs 29,391.08 per kl increase in rates effected in four monthly tranches starting July 1.
The reduction in price of jet fuel, which makes up for 40 per cent of an airline’s operating cost, will ease the burden on already financially strained airlines.
Alongside, oil firms raised the price of commercial LPG – used in various establishments such as hotels and restaurants – by Rs 21.
A 19-kg commercial LPG cylinder will now cost Rs 1,796.50 in the national capital and Rs 1,749 in Mumbai.
The price hike follows a Rs 77.5 per cylinder reduction in rates effected November 16.
Saudi contract price (CP), the benchmark used for pricing of LPG, has increased following a firming-up trend in crude oil prices witnessed in the last few weeks’ oversupply concerns.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st of every month, based on the average international price in the previous month. The revision November 16 was an outlier.
Petrol and diesel prices continued to remain on freeze for a record 21st month in a row. Petrol costs Rs 96.72 per litre in the national capital, and diesel comes for Rs 89.62 per litre.
State-owned fuel retailers are supposed to revise petrol and diesel prices daily, based on a 15-day rolling average of benchmark international fuel prices, but they haven’t done that since April 6, 2022.
Prices were last changed May 22 when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.
PTI