Jet fuel prices hiked by 5%, may impact airfare; Commercial LPG cylinder rate also increased | Read all details here

Aviation turbine fuel (ATF) price was increased by Rs 5,779.84 per kilolitre in the national capital to Rs 118,199.17 per kl from Rs 112,419.33, according to a price notification of state-owned fuel retailers. Commercial cooking gas (LPG) rates were raised by a steep Rs 209 per 19-kg cylinder.

New Delhi: Days after it reduced the cost of cooking gas, the central government on Sunday raised the price of Commercial LPG cylinder by a steep Rs 209. Jet fuel or Aviation turbine fuel (ATF) price was also hiked by 5 per cent -- the fourth straight monthly increase since July.

However, the price of domestic LPG - the one used in household kitchens for cooking purposes - remained unchanged at Rs 903 per 14.2-kg cylinder. ATF price was increased by Rs 5,779.84 per kilolitre, or 5.1 per cent, in the national capital to Rs 118,199.17 per kl from Rs 112,419.33, according to a price notification of state-owned fuel retailers.

The increase comes on back of the steepest-ever 14.1 per cent increase (Rs 13,911.07 per kl) effected on September 1, and a 8.5 per cent or Rs 7,728.38 per kl increase on August 1. The fourth straight increase in prices of jet fuel, which makes up for 40 per cent of an airline's operating cost, will increase the burden on already financially strained airlines.

On July 1, ATF price had gone up by 1.65 per cent or Rs 1,476.79 per kl. In four increases, ATF prices have gone up by a record Rs 29,391.08 per kl. Alongside, oil firms raised the price of commercial LPG - the one used in establishments such as hotels and restaurants - by Rs 209. A 19-kg commercial LPG cylinder will now cost Rs 1,731.50 in the national capital and Rs 1,684 in Mumbai. The increase reserves most of the Rs 157.5 per cylinder cut in commercial LPG price effected on September 1 and Rs 100 cut effected from August 1.

Saudi contract price (CP), the benchmark used for pricing of LPG, has increased following a firming-up trend in crude oil prices witnessed in last few weeks over supply concerns. Oil companies, which had on August 30, cut domestic LPG rates by Rs 200 per 14.2-kg cylinder, did not change the price of 14.2-kg cylinders.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st of every month based on the average international price in the previous month. Petrol and diesel prices continued to remain on freeze for a record 18th month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62 per litre.