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Rediff.com  » Business » Jet fuel price hiked; non-subsidised LPG to be costlier

Jet fuel price hiked; non-subsidised LPG to be costlier

June 01, 2016 11:48 IST

Rates vary at different airports because of differential local sales tax or value-added tax (VAT).

 
 

Aviation turbine fuel or jet fuel price was on Wednesday hiked by a steep 9.2 per cent, while that of non-subsidised cooking gas was raised by Rs 21 per cylinder.

In the fourth straight monthly increase in rates on global cues, ATF price in Delhi was increased by Rs 3,945.47 per kilolitre, or 9.2 per cent, to Rs 46,729.48 per kilolitre, the oil companies announced on Wednesday.

The hike comes on the back of 1.5 per cent increase effected on May 1 and a steep Rs 3,371.55 (8.7 per cent) hike on April 1. Prior to that, rates were hiked by steep 12 per cent, or by Rs 4,174.49, on March 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 latest price increase will add to the financial burden of cash-strapped carriers.

No immediate comment was available from airlines on the impact of the price increase on passenger fares.

Simultaneously, the oil firms raised prices of non-subsidised LPG, which consumers buy after exhausting their quota of 12, by Rs 21 per 14.2-kg cylinder, the second monthly increase in rates.

Non-subsidised cooking gas (LPG) now costs Rs 548.50 in Delhi as against Rs 527.50 previously. The hike comes on the back of a Rs 18 per cylinder increase in price on May 1.

Subsidised LPG costs Rs 419.18 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. 

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