Jet fuel or ATF price on Tuesday was hiked by a steep 8.5 per cent – the second increase in a month, while commercial cooking gas rate was cut by Rs 100 per cylinder in line with divergent trends in international benchmarks.
Aviation turbine fuel (ATF) price was increased by 7,728.38 per kilolitre, or 8.5 per cent, in the national capital to Rs 98,508.26 per kl, according to a price notification of state-owned fuel retailers.
Rates, which vary from state to state depending on the incidence of local sales tax or VAT, have been increased on firming up of global rates that followed four months of decline.
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The hike comes on the back of a 1.65 per cent or Rs 1,476.79 per kl increase in ATF prices effected from July 1.
Prior to that, rates had been cut on four occasions.
Price of commercial LPG, used in establishments such as hotels and restaurants, on the other hand, was reduced by Rs 100 per cylinder.
A 19-kg commercial LPG cylinder now costs Rs 1,680 in the national capital.
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Saudi contract price (CPP), the benchmark used for pricing of LPG, has reduced since peaking in March and the same is reflected in domestic prices, industry officials said.
Globally, jet fuel prices have increased in line with the firming up of global crude oil prices, necessitating the hike in ATF rates.
Commercial LPG rates were cut on three previous monthly revisions beginning April. In three cuts, prices had gone down by Rs 346.5 per 19-kg cylinder.
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The price of domestic LPG — used in the kitchen for cooking purposes — remained unchanged at Rs 1,103 per 14.2-kg cylinder in the national capital.
Domestic LPG rate was last changed on March 1, when it was hiked by Rs 50 per cylinder.
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 16th month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62.
State-owned fuel retailers are supposed to revise petrol and diesel prices daily based on a 15-day rolling average of benchmark international fuel prices but they haven’t done that since April 6, 2022.
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Prices were last changed on May 22, when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.