Jet fuel prices raised 5.5%, LPG cheaper by R11 a cylinder

New Delhi, July 1: Aviation turbine fuel (ATF) price was on Friday hiked by 5.5% for the fifth month in a row, while that of non-subsidised cooking gas (LPG) was cut by R11 per cylinder, in line with global trends.

ATF, or jet fuel, price in Delhi was increased by R2,557.7 per kilolitre (kl), or 5.47%, to R49,287.18, the oil companies announced on Friday. This is the fifth straight monthly increase in rates — the last being on June 1 when prices were hiked by a steep 9.2%, or R3,945.47, to R46,729.48/kl.

In the five increases, ATF rates have gone up by 25%, or R9,985.87, per kl since March. But the fuel used in aeroplanes is still cheaper than petrol and diesel.

A litre of petrol in Delhi costs R64.76 a litre and diesel is priced at R54.70 compared with R49.28 a litre price of ATF. This is mainly because the government took away most of the gains arising out of the drop in international oil prices by way of raising excise duties on auto fuels.

ATF rates vary at different airports because of differential local sales tax or value-added tax. Jet fuel constitutes over 40% of an airline’s operating cost and the latest price increase will add to the financial burden of 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 R11 per 14.2-kg cylinder.

Non-subsidised cooking gas (LPG) now costs R537.50 in Delhi as against R548.50 per cylinder previously.

The cut in rates comes on back of two successive increases — first by R18 per cylinder on May 1 and then by R21 per bottle on June 1. PTI