Jet fuel price hiked by 6%, cooking gas gets Rs 1.50 costlier

Aviation turbine fuel (ATF) or Jet fuel price on Sunday was hiked by six per cent on firming international rates with effect from today.

This is the third consecutive monthly hike in Jet fuel prices since August.

The ATF will now cost Rs 53,045 per kilolitre in Delhi against Rs 50,020 per kilolitre previously.

Meanwhile, cooking gas (LPG) price was also hiked by Rs 1.50 per cylinder (14.2 Kg) in line with the government decision to raise rates every month to eliminate subsidies by March next year.

A subsidised 14.2 kilogram LPG cylinder will now cost 488 rupees 68 paise from today in Delhi as against 487 rupees 18 paise previously.

 

Union Petroleum and Natural Gas Minister Dharmendra Pradhan earlier ordered state-run oil companies to raise subsidised cooking gas (LPG) prices by Rs. 4 per cylinder every month to eliminate all the subsidies by March next year.

Public sector oil marketing companies (OMCs) were authorised to increase price of subsidised domestic LPG cylinder by Rs. 2 per cylinder (14.2-kg) per month (excluding VAT) with effect from July 1, 2016.

Oil companies had hiked LPG rates on 10 occasions since that go-ahead.

The government had previously asked Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) by Rs. 2 per 14.2-kg cylinder per month (excluding VAT).

Now, the quantum has been doubled so as to bring down the subsidy to nil.

Every household is entitled to 12 cylinders of 14.2-kg each at subsidised rates in a year.

Any requirement beyond that is to be purchased at market price. Oil companies have raised rates twice since then, the last being on July 1 when rates were up by a steep Rs. 32 per cylinder -- the steepest increase in six years.

This hike was because of the May 30 order as well as reflection of hiked tax rates under the Goods and Services Tax (GST) regime.