ATF Price Hiked by 7.5%; Commercial LPG Cut by Rs 58.5

New Delhi: State-owned fuel retailers on Tuesday hiked price of jet fuel or aviation turbine fuel (ATF) sharply by 7.5 per cent, while the cost of LPG used in commercial establishments was reduced by Rs 58.50 per cylinder, reflecting shifts in international benchmark rates. However, cooking gas used in domestic households remained unchanged at Rs 853 per 14.2-kg cylinder, according to a notification by oil-marketing companies (OMCs).

The hike in ATF price is in line with the surge in international oil prices that followed Israel's attack on Iran last month. However, experts said that this abrupt hike will add to the burden on commercial airlines as the fuel they use makes up for almost 40 percent of their operating cost. When asked about the impact, officials of the airlines declined to comment on this matter.

After three rounds of price cuts, the ATF price was increased by Rs 6,271.5 per kilolitre, or 7.5 per cent, to Rs 89,344.05 per kl in the national capital-home to one of the busiest airports in the country. The increase amounts to half of the total reduction implemented over three monthly installments since April.

“ATF price was last reduced by Rs 2,414.25 per kl (2.82 per cent) to Rs 83,072.55 per kl on June 1. Prior to that, rates were cut by 4.4 per cent (Rs 3,954.38 per kl) on May 1 and a steep reduction of 6.15 per cent (Rs 5,870.54 per kl) on April 1,” the OMCs said in the notification.

As per the notification, the ATF price in Mumbai was hiked to Rs 83,549.23 per kl from Rs 77,602.73 per kl, while those in Chennai and Kolkata were increased to Rs 92,526.09 and Rs 92,705.74 per kl, respectively. Rates differ from city to city depending on incidence of local taxes such as VAT.

Meanwhile, oil firms also cut the price of commercial LPG by Rs 58.5 per 19-kg cylinder. Commercial LPG now costs Rs 1,665 in the national capital and Rs 1,616.50 in Mumbai. This is the fourth straight reduction in commercial LPG rates. Prices were last reduced by Rs 24 per 19-kg cylinder on June 1. Prior to that a Rs 14.50 cut on May 1 and a Rs 41 per cylinder reduction was effected on April 1. In all, prices have been cut by Rs 138 per bottle since April.

While oil prices are on the rise, LPG rates have softened because of low demand during the summer months. Prices of ATF and LPG differ from state to state depending on the incidence of local taxes, including VAT. However, the rate of cooking gas used in domestic households remained unchanged at Rs 853 per 14.2-kg cylinder. The price of the domestic LPG was hiked by Rs 50 per cylinder in April.