Snapping seven consecutive monthly cuts since August, Oil marketing Companies (OMCs) hiked jet fuel prices, which constitute 40% of an airline’s operating cost, by steep 8.2% or Rs 3,849.97 per kilolitre to Rs 50,363 per kl in country’s national capital, Delhi. Prior to latest hike, ATF price had been cut by Rs 23,648.73 or 33% in seven reductions since August 2014. Even after today's hike, jet fuel rates continue to remain lowest since February 2011.
Simultaneously, the oil firms also hiked the price of non-subsidized or market-priced domestic cooking gas (LPG) by Rs 5 to Rs 610 per 14.2-kg cylinder in Delhi. The increase comes on back of seven straight reductions in rates of non-subsidized or market-priced LPG since August. The current quota of subsidized rates remains to be 12 cylinders/ per year. A subsidized LPG refill currently costs Rs 417 in Delhi. Notably, in the seven monthly reductions, non-domestic LPG rates had been slashed by Rs 317.50 per cylinder, bringing the price to a three-year low.
State-owned fuel retailers, Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) have revised jet fuel and non-subsidised LPG prices on the first of every month based on average imported cost and rupee-dollar exchange rate.