Aviation turbine fuel price hiked and non-subsidized LPG rate cut by Rs.53
Posted on: 03/Mar/2014 12:18:22 PM
According to Indian Oil Corp. Ltd. (IOC), the nation’s largest fuel retailer the Aviation turbine fuel (ATF) price has been hiked by a marginal 1% while rates of non-subsidised cooking gas (LPG) have been cut by Rs53.5 per cylinder reflecting global trends.
ATF price at Delhi was hiked by Rs753.34 per kilolitre (kl), or 1%, to Rs74, 825.54 per kl, according to Indian Oil Corp. Ltd. (IOC), the nation’s largest fuel retailer.
The hike follows a 3% cut in rates on 1 February on softening international oil rates. However, prices have gone up since then and rupee depreciated against the US dollar, making imports costlier.
ATF constitutes over 40% of an airline’s operating costs and the price hike will increase the fuel cost of the cash-strapped carriers.
No immediate comments were available from the airlines on the impact of the price hike on passenger fares.
Separately, the price of non-subsidized cooking gas (LPG), which customers buy after using up their quota of 12 subsidized cylinders, was cut by Rs53.5 per cylinder, the second straight reduction in rates since February.
The 14.2-kg cooking gas cylinder that consumers buy beyond their entitled 12 cylinders at subsidized rates, will now cost Rs1,080.50, down from Rs1,134, in Delhi.
The three fuel retailers—IOC, Hindustan Petroleum Corp. Ltd. (HPCL) and Bharat Petroleum Corp. Ltd. (BPCL)—revise ATF and non-domestic LPG prices on the first of every month, based on the average international price in the preceding month.
