Jet Fuel Price Cut By 2.7% On Falling Global Rates
The latest 7 percent hike on June 1 took rates to a four-year high.
Aviation turbine fuel price was cut by 2.7 percent today as falling international rates brought down rates from a four-year high.
ATF, or jet fuel, was cut by Rs 1,942 a kilolitre, or 2.7 per cent, to Rs 68,086 per kilolitre in Delhi, according to state-owned oil firms.
The reduction comes on the back of two successive monthly hikes, the last being a steep 7 percent on June 1 that took rates to a four-year high of Rs 70,028 per kilolitre in Delhi. On May 1, ATF price was raised by Rs 3,890 per kilolitre (6.3 percent) to Rs 61,450 per kilolitre.
Simultaneously, oil firms raised the price of subsidised LPG by Rs 2.71 a cylinder to Rs 496.26. The hike followed a Rs 2.34 per cylinder increase on June 1.
A household is entitled to 12 cylinders of 14.2 kg each at subsidised rates in a year. Any quantity beyond that is to be bought at market rate. The price of non-subsidised cooking gas was also hiked by Rs 55.50 to Rs 754.
On June 1, rates were raised by Rs 48.50 per bottle. Kerosene price was hiked by 26 paise to eliminate the subsidy. While Delhi has been declared a kerosene-free city, a litre of the fuel costs Rs 25.29 in Mumbai now, up from Rs 25.03 previously.
Oil companies have since July 1, 2016, been raising the retail selling price of PDS kerosene by about 25 paise a litre. Rates have since then risen by over Rs 10 a litre. A litre of kerosene used to cost Rs 15.02 on July 1, 2016, in Mumbai and now costs Rs 25.29.
State-owned fuel retailers revise rates of ATF, LPG and kerosene on 1st of every month based on average international rate and rupee-US dollar exchange rate in the preceding month.