ATF price hiked by 1%, non-subsidised LPG rate cut by Rs 53

Jet fuel or ATF price has been hiked by a marginal 1% while rates of non-subsidised cooking gas (LPG) have been cut by Rs 53.5 per kg reflecting global trends.

Aviation Turbine Fuel, or ATF, price at Delhi was hiked by Rs 753.34 per kilolitre, or 1%, to Rs 74,825.54 per kl, according to Indian Oil Corp, the nation's largest fuel retailer.

The hike follows a 3% in rates on February 1 on softening international oil rates. However, prices have gone up since then and rupee depreciated against US dollar, making imports costlier.

In Mumbai, jet fuel costs Rs 77,322.6 per kl as against Rs Rs 76,524.33 per kl previously, IOC said. Rates at different airports vary because of difference in local sales tax or VAT.

Jet fuel 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-subsidised cooking gas (LPG), which customers buy after using up their quota of 12 subsidised cylinders, was cut by Rs 53.5 per cylinder, the second straight reduction in rates since February.

The 14.2-kg cooking gas cylinder that consumers buy beyond their entitled 12 bottles at subsidised rates, will now cost Rs 1,080.50, down from Rs 1,134, in Delhi.

The rates were on February 1 cut by Rs 107 -- from Rs 1,241 per cylinder to Rs 1,134, according to IOC.

A subsidised LPG cylinder in Delhi costs Rs 414. Non-domestic LPG rates were at the beginning of the year hiked by a steep Rs 220 per cylinder but have now been cut in line with softening of international rates.

IOC said losses on LPG have come down to Rs 605.50 per 14.2-kg cylinder from Rs 656 in February. The loss was Rs 762.50 in January.

The three fuel retailers -- IOC, Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) -- revise jet fuel and non-domestic LPG prices on the first of every month, based on the average international price in the preceding month.