NEW DELHI: The oil marketing companies (OMCs) reduced the price of Jet fuel or ATF (aviation turbine fuel) by 4%. The rate of commercial cooking gas (LPG) also lowered by Rs 1.50 per 19-kg cylinder. There is no change in the price of domestic LPG — used in household kitchens for cooking purposes.
According to the price notification, ATF will now cost Rs 101,993.17 per kl in Delhi while a 19-kg commercial LPG cylinder will cost Rs 1,755.50. This is the third straight monthly reduction in jet fuel prices. In November, oil companies cut the ATF price by nearly 6% (Rs 6,854.25 per kl) and in December by Rs 5,189.25, or 4.6nt. The three rounds of reduction have wiped away almost 45% of the `29,391.08 per kl increase in rates affected in four monthly tranches starting July 1.
The reduction in the price of jet fuel, which makes up for 40% of an airline’s operating cost, will ease the burden on already financially strained airlines. The oil companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) also reduced the price of commercial LPG – used in various establishments such as hotels and restaurants – by Rs 1.50. The OMCs revise cooking gas and ATF prices on the 1st of every month, based on the average international price in the previous month.
The revision on December 22 was an outlier. However, there is a no change in price of petrol and diesel that continued to remain on freeze for record 21 months in a row. Petrol costs Rs 96.72/litre in the national capital, and diesel costs Rs 89.62/litre.