Non-subsidised LPG rate cut by Rs 5; ATF to cost more

Price of non-subsidised LPG was today cut by Rs 5 per cylinder even as jet fuel (ATF) rates were marginally raised in step with global trend.

The price of non-subsidised or market-priced domestic cooking gas (LPG) was cut by Rs 5 to Rs 616 per 14.2-kg cylinder in Delhi, state-owned fuel retailers said.

The reduction comes on the back of two successive hikes - Rs 5 on March 1 and Rs 11 on April 1.

Households are entitled to 12 cylinders of 14.2-kg each at subsidised rate of Rs 417 in Delhi. Any requirement beyond this has to be bought at the market price, which is now Rs 616 in Delhi.

In Mumbai, non-subsidised cooking gas has been cut by Rs 4.50 to Rs 627.50, while it will cost Rs 649 in Kolkata as against Rs 654.50, previously. Chennai will see a price cut of Rs 5.50 to Rs 608.50 per cylinder.

Rates vary from state-to-state depending on the incidence of local sales tax or VAT.

Oil companies raised price of aviation turbine fuel (ATF), or jet fuel, in Delhi by Rs 272 per kilolitre or 0.5% to Rs 49,609.84 per kl.

The increase comes on the back of a 2% reduction in rates last year.

Jet fuel constitutes over 40% of an airline's operating costs and the price cut will reduce the financial burden on cash-strapped carriers.

No immediate comment was available from airlines on the impact of the price hike on passenger fares.

State-owned fuel retailers, Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise jet fuel and non-subsidised LPG prices on the first of every month based on average imported cost and rupee-dollar exchange rate. The same on petrol and diesel is done on a fortnightly basis.