ATF price up 12%; non-subsidised LPG rate cut by Rs 61.5
Aviation Turbine Fuel (ATF), or jet fuel, price was today hiked by 12 per cent but that of non-subsidised cooking gas LPG was slashed by Rs 61.5 per cylinder on global cues.
ATF price in Delhi was raised by Rs 4,174.49 per kilolitre (kl), or 11.88 per cent, to Rs 39,301.31 per kl, oil companies said today.
The hike comes on back of a steep 12 per cent cut in rates from February 1. The jet fuel prices on that day were reduced by Rs 4,765.5 per kl.
The hike today breaks the cycle of three consecutive price reductions. Rates were cut by 10 per cent on January 1.
Rates vary at different airports because of differential local sales tax or value-added tax (VAT).
Jet fuel constitutes over 40 per cent of an airline’s operating cost and the price increase will add to the financial burden on cash-strapped carriers.
No immediate comment was available from airlines on the impact of the price increase on passenger fares.
Simultaneously, the oil firms cut prices of non-subsidised LPG, which consumers buy after exhausting their quota of 12, by Rs 61.5 per 14.2-kg bottle.