ATF Price Hike, LPG Rates Cut

New Delhi, Dec 1 (PTI) Aviation Turbine Fuel (ATF) prices were raised by 5.4 per cent on Monday, while commercial LPG rates were cut by Rs 10 per cylinder as state-owned oil companies announced their monthly price revision in line with global trends.

ATF prices in Delhi increased by Rs 5,133.75 per kilolitre to Rs 99,676.77 per kl, marking the third consecutive monthly hike, according to state-owned fuel retailers.

Rates had risen by about 1 per cent on November 1 and by 3.3 per cent on October 1.

The latest increase is expected to add pressure on airlines, for which fuel accounts for nearly 40 per cent of operating costs.

No immediate comments could be obtained from the airlines on the impact of the price change.

In Mumbai, ATF was revised to Rs 93,281.04 per kl, while prices in Chennai and Kolkata were raised to Rs 1,03,301.80 and Rs 1,02,371.02 per kl, respectively.

Fuel prices vary across cities due to local taxes. Alongside, the price of a 19-kg commercial LPG cylinder used by hotels and restaurants was cut to Rs 1,580.50 in Delhi.

This is the second reduction in a row, offsetting the Rs 15.50 increase implemented in October (rates had been cut by Rs 5 per cylinder on November 1). Since April, six earlier cuts have reduced commercial LPG prices by a total of Rs 223 per cylinder.

Domestic LPG prices remained unchanged at Rs 853 per 14.2-kg cylinder, following a Rs 50 hike in April.

Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum revise ATF and LPG prices on the first day of every month based on international benchmarks and the exchange rate.

Petrol and diesel prices continue to remain frozen after a Rs 2 per-litre reduction in March last year; petrol currently costs Rs 94.72 per litre in Delhi and diesel Rs 87.62.