The cost of jet fuel increased 2.6%; price of unsubsidized LPG up by Rs 19
NEW DELHI: Fuel for airplanes or the price of ATF rose 2.6 percent on Wednesday and that of LPG unsubsidized cooking gas at 19 rupees per cylinder, due to an increase in international rates.
The price of aviation turbine fuel (ATF), used to propel airplanes, rose by Rs 1,637.25 per kiloliter, or 2.6 percent, to Rs 64,323.76 per kl in Delhi, according to a price notification from state-owned fuel retailers .
This is the second consecutive monthly increase in guaranteed rates due to the reassertion of prices in the international market.
In India, which depends on imports to meet 84 percent of its oil needs, domestic fuel prices are on par with international reference prices.
The ATF price increased on December 1 by a marginal Rs 13.88 per kl.
The two consecutive increases have thrust aircraft fuel prices at its highest level since June 2019.
The increase will add to the burden of airlines with liquidity problems that are already suffering the pressure of fierce competition in the sector.
Despite the increase, at Rs 64.32 per liter, ATF costs less than gasoline and diesel. A liter of gasoline in the national capital costs Rs 75.14, while diesel is priced at Rs 67.96 per liter.
Simultaneously, the oil companies also increased the price of LPG not subsidized to Rs 714 per cylinder of 14.2 kg from Rs 695 previously.
This is the fifth consecutive monthly increase in cooking gas prices since September 2019. In total, unsubsidized cooking gas prices have increased by Rs 139.50 per cylinder in the last five months.
The unsubsidized LPG is the gas that consumers buy after exhausting their quota of 12 cylinders of 14.2 kg at submarket or subsidized rates of Rs 495.86.
The LPG, as well as ATF prices, are reviewed on the 1st of each month based on the average international reference fuel rate and exchange rate in the previous month.
In addition, the price of kerosene sold through the public distribution system (PDS) increased by 26 countries to Rs 35.58 per liter in Mumbai.
This is in line with the 2016 decision to raise rates by 25 increases per liter each month until the fuel subsidy is eliminated.
Delhi has been declared free of kerosene and PDS kerosene is not sold in the national capital.