Non-subsidized LPG price slashed by Rs 23.50, jet fuel cost cut by 1.80%

On the back of rupee appreciation which has lowered import costs, Jet fuel prices have been cut by 1.8% and rates of non-subsidized cooking gas (LPG) have been reduced by Rs 23.50 per cylinder. Marking the third reduction in jet fuel rates since April, jet fuel rates have been slashed as declining international oil prices and the strengthening of the rupee against the US dollar made imports cheaper.

While, in Mumbai, jet fuel costs Rs 71,940.36 per kl as against Rs 73,306.89 per kl previously, the price of Jet fuel at Delhi was cut by Rs 1,285.89 per kilolitre, or 1.81%, to Rs 69,747.98 per kl. The rates vary because of differences in local sales tax or VAT.  This move will definitely ease the financial burden of cash-strapped carriers, since Jet fuel constitutes over 40 per cent of an airline's operating costs. 

Separately, the price of non-subsidized LPG, which customers buy after using up their quota of 12 subsidized cylinders, was reduced by Rs 23.50 per cylinder, which marks fifth straight reduction in rates since February. With this, each non-subsidized 14.2-kg cooking gas cylinder will now cost Rs 905, down from Rs 928.50, in Delhi.

However, state-run fuel retailers, Indian Oil Corporation, Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL), revise jet fuel prices on the first of every month based on the average international price in the previous month. Revenue losses on LPG exceed Rs 450 per cylinder in Delhi.