ATF Price Hiked 3%, Commercial LPG Up Rs 15.50

New Delhi – Aviation Turbine Fuel (ATF) prices were hiked by over 3 per cent and commercial LPG rates by Rs 15.50 per cylinder on Wednesday as oil firms revised fuel prices in line with global benchmarks.

Jet fuel (ATF) price was increased by Rs 3,052.5 per kilolitre, or 3.3 per cent, to Rs 93,766.02 per kl in the national capital – home to one of the busiest airports in the country, according to state-owned fuel retailers.

The increase comes on the back of a 1.4 per cent (Rs 1,308.41 per kl) reduction last month.

The price hike will increase the burden on commercial airlines, for whom fuel makes up almost 40 per cent of the operating cost.

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

The ATF price in Mumbai was hiked to Rs 87,714.39 per kl from Rs 84,832.83 per kl, while those in Chennai and Kolkata were increased to Rs 96,816.58 and Rs 97,302.14 per kl, respectively.

Rates differ from city to city, depending on the incidence of local taxes such as VAT.

Alongside, oil firms increased the price of commercial LPG used in hotels and restaurants by Rs 15.50 per 19-kg cylinder. Commercial LPG now costs Rs 1,595.50 in the national capital.

The hike follows six-monthly reductions, the last being of Rs 51.50 on September 1. In the six reductions, prices were cut by Rs 223 per bottle since April.

Oil prices have firmed since the last revision mainly because of geopolitical reasons, necessitating the changes in retail rates.

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