Steepest-Ever 14% Jet Fuel Price Hike, Commercial Cooking Gas Price Cut

Jet fuel or ATF price on Friday was hiked by the steepest-ever 14 per cent - the third straight increase, while the commercial cooking gas rate was cut by Rs 157.5 per cylinder in line with divergent trends in international benchmarks.

Aviation turbine fuel (ATF) price was increased by Rs 13,911.07 per kilolitre, or 14.1 per cent, in the national capital to Rs 1,12,419.33 per kl, according to a price notification of state-owned fuel retailers.

Rates, which vary from state to state depending on the incidence of local sales tax or VAT, have been increased on firming up of global prices in the last couple of months.

The hike comes on the back of an 8.5 per cent or Rs 7,728.38 per kl increase effected from August 1. Prior to that, rates had gone up by 1.65 per cent or Rs 1,476.79 per kl on July 1.

In three increases, ATF prices have gone up by a steep Rs 23,116.24 per kl. On the other hand, the price of commercial LPG, used in establishments such as hotels and restaurants, was reduced by Rs 157.50 per cylinder.

A 19-kg commercial LPG cylinder now costs Rs 1,522.50 in the national capital.

The reduction comes on the back of a Rs 100 per cylinder cut effected from August 1.

Saudi contract price (CP), the benchmark used for pricing of LPG, has reduced since peaking in March and the same is reflected in domestic prices, industry officials said.

Globally, jet fuel prices have increased in line with the firming up of global crude oil prices, necessitating the hike in ATF rates.

The price of domestic LPG -- used in the kitchen for cooking purposes -- remained unchanged at Rs 903 per 14.2-kg cylinder in the national capital.

Rates were last cut by Rs 200 on August 30.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st of every month based on the average international price in the previous month.

Petrol and diesel prices continued to remain on freeze for a record 17th month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62 per litre.

State-owned fuel retailers are supposed to revise petrol and diesel prices daily based on a 15-day rolling average of benchmark international fuel prices but they haven't done that since April 6, 2022.

Prices were last changed on May 22, when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.
 

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