Non-subsidised LPG rates hiked, jet fuel cut

State run-Indian Oil Corp (IOC) hiked prices of non-subsidised LPG, or cooking gas, cylinders by around Rs.50, effective from Friday.

Allowing for local levies, the market price of a non-subsidised liquefied petroleum gas cylinder of 14.4 kg is now Rs.657.50 in Delhi, Rs.686.50 in Kolkata, Rs.671 in Mumbai and Rs.671.50 in Chennai.

This is the second such successive hike in less than two months. Prices were last raised in December by nearly Rs.60 a cylinder.

Also from Friday, cooking gas consumers with taxable income of more than Rs.10 lakh per annum will no longer get benefit of the subsidy on gas cylinders, the government has announced.

To be applicable from the New Year, the directive would be effected "initially on a self-declaration basis", a petroleum ministry statement said.

Meanwhile, with the Indian basket of crude oils again in free fall towards the $30 a barrel mark, prices of aviation turbine fuel (ATF), or jet fuel, were reduced by a steep 10 percent effective from Friday to Rs.39,892.32 per kl in Delhi from Rs.44,320.32 per kl.

This caused airlines' stocks to hit fresh record highs in intra-day trade on hopes of a boost in companies' profitability.

IOC has also announced cuts in transport fuel prices effective from Friday, with petrol prices per litre being reduced by Rs.0.63 and diesel by Rs.1.06, both at Delhi, with corresponding price revision in other states.

Petrol per litre now costs Rs.59.35 in Delhi, Rs.65.12 in Kolkata, Rs.66.40 in Mumbai and Rs.59.77 in Chennai.

The price of diesel per litre from January 1 is Rs.45.03 in Delhi, Rs.48.80 in Kolkata, Rs.52.16 in Mumbai and Rs.46.25 in Chennai.

The Indian basket of crude oils closed trading on Thursday at $32.90 for a barrel of nearly 160 litres.