ATF cost up 2.6%; non-subsidised LPG price hiked by Rs 19

Jet fuel or ATF price was on Wednesday hiked by 2.6 percent and that of non-subsidized cooking gas LPG by Rs 19 per cylinder on the back of a rise in international rates. Price of Aviation Turbine Fuel (ATF), used to power aeroplanes, was raised by Rs 1,637.25 per kilolitre, or 2.6 percent, to Rs 64,323.76 per kl in Delhi, according to a price notification of state-owned fuel retailers.

This is the second straight monthly increase in rates warranted due to firming up of prices in the international market. In India, which is dependent on imports to meet 84 percent of its oil needs, prices of domestic fuels are at par with benchmark international prices.

ATF price was on December 1 increased by a marginal Rs 13.88 per kl. The two back-to-back increases have push jet fuel prices to their highest since June 2019.

The hike will add to the burden of cash strapped airlines that are already reeling under pressure from cut-throat competition in the sector. Despite the increase, at Rs 64.32 per liter ATF costs less than petrol and diesel. A liter of petrol in the national capital comes for Rs 75.14 while diesel is priced at Rs 67.96 a liter.

Simultaneously, oil companies also raised the price of non-subsidized LPG to Rs 714 per 14.2-kg cylinder from Rs 695 previously. This is the fifth straight monthly increase in cooking gas prices since September 2019. In all, non-subsidized cooking gas prices have gone up by Rs 139.50 per cylinder in the last five months.

Non-subsidized LPG is the gas that consumers buy after exhausting their quota of 12 cylinders of 14.2-kg at sub-market or subsidized rates of Rs 495.86. LPG, as well as ATF prices, are revised on 1st of every month based on the average international rate for benchmark fuel and foreign exchange rate in the preceding month.

Also, the price of kerosene sold through the public distribution system (PDS) was increased by 26 paise to Rs 35.58 per litre in Mumbai. This is in accordance with the 2016 decision to raise rates by 25 paise a litre every month till subsidy on the fuel is eliminated.

Delhi has been declared kerosene-free and no PDS kerosene is sold in the national capital.