Oil companies hike jet fuel prices by nearly 5.5%

Oil companies hike jet fuel prices by nearly 5.5%

The cost of Aviation Turbine Fuel or jet fuel has been raised by 5.5% on the back of global trends on Thursday, while the cost of non-subsidized kerosene has been hiked by 54 paisa to 43.18 per litre. The cost of non-subsidized cooking LPG on the other hand, has been slashed by Rs 42 per cylinder.

ATF prices in Delhi were raised by Rs.2,245.92 per kilolitre (kl), or 5.48%, to Rs.43,184.16 per kl, oil companies announced on Thursday. The hike comes after a steep 11.7%, or Rs.5,469.12 per kl, cut in rates to Rs.40,938.24 per kl effected from 1 September, the third in straight monthly reduction.

Rates vary at different airports because of differential local sales tax or value-added tax (VAT). Jet fuel constitutes over 40% of an airline’s operating costs and the price increase will raise the financial burden on cash-strapped carriers.

Oil marketing firms have also cut prices of non-subsidized LPG, which consumers buy after exhausting their quota of subsidized cooking fuel, by Rs.42 per 14.2kg cylinder. Non-subsidized cooking gas now costs Rs.517.50 in Delhi. Non-subsidized LPG price was last cut by Rs.25.50 on 1 September. Prior to that rates were cut by Rs.23.50 on August 1 and by Rs.18 per cylinder on July 1. Subsidized LPG costs Rs.417.82 per 14.2kg cylinder in Delhi.

Also, the price of non-subsidized kerosene, available outside the ration shop, has been raised to Rs.43.18 per litre. Subsidised kerosene currently costs Rs.14.96 per litre in Delhi.

The three fuel retailers—Indian Oil Corp. Ltd, Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd—revise jet fuel prices, non- subsidized LPG and non-subsidized kerosene rates on the first day of every month, based on the average international price in the preceding month.


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