New Delhi: Aviation Turbine Fuel (ATF) or jet fuel price was today slashed by 10 per cent but rates of non-subsidised cooking gas LPG were hiked by Rs 49.5 per cylinder on global trends.
Rates of non-subsidised kerosene were cut by Rs.1.05 per litre to Rs.43.19 a litre.
ATF price in Delhi was reduced by Rs. 4,428 per kilolitre (kl) or 9.99 per cent to Rs. 39,892.32 per kl, oil companies announced on Friday.
This is the second reduction in a row. Prices were cut by 1.17 per cent on December 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 costs and the price cut will reduce the financial burden on cash-strapped carriers.
No immediate comment was available from airlines on the impact of price reduction on passenger fares.
Simultaneously, the oil firms raised prices of non-subsidised LPG, which consumers buy after exhausting their quota of subsidised cooking fuel, by Rs. 49.5 per 14.2kg bottle.
Non-subsidised cooking gas (LPG) now costs Rs. 657.50 in Delhi.
This is the third hike in rates in as many months.
Non-subsidised LPG price was last hiked by Rs. 61.50 on December 1. Prior to that, rates were increased by Rs. 27.5 per cylinder on November 1.
Non-subsidised or market-priced LPG is one that consumers buy after exhausting their quota of 12 bottles of 14.2kg each at subsidised rates in a year.
Subsidised LPG costs Rs. 419.33 per 14.2kg cylinder in Delhi.
Also, the price of non-subsidised kerosene, available outside the ration shop, has been hiked to Rs.43194.82 per kl or Rs.43.19 per litre, from Rs.44,246.47 per kl.
This is the third reduction in rate in one month. Prior to this, prices of non-subsidised or non-PDS kerosene were cut by about 25 paise on December 1 and 50 paise on December 16.
Subsidised kerosene currently costs Rs.14.96 a litre in Delhi.
The three fuel retailers — Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum — revise jet fuel prices, non-subsidised LPG and non-subsidised kerosene rates on the first day of every month, based on the average international price in the preceding month.