Air travel to become dearer as ATF price hiked by 4%

Jet fuel (ATF) price on Tuesday was hiked by 4.2 per cent but that of commercial LPG used in non-residential establishments such as hotels and restaurants was cut by Rs 115.5 per 19-kg cylinder reflecting global energy trends.

Aviation turbine fuel (ATF) price was hiked by Rs 4,842.37 per kilolitre, or 4.19 per cent, to Rs 120,362.64 per kl in the national capital, according to a price notification of state-owned fuel retailers.

This reverses a 4.5 per cent cut in jet fuel prices affected last month.

Separately, the oil firms reduced the price of a 19-kg commercial LPG cylinder to Rs 1,744 from Rs 1,859.50 in the national capital.

This is the seventh reduction in the price of commercial LPG since June, in step with softening of international energy prices.

In all, rates have come down by Rs 610 per 19-kg cylinder.

However, rates of LPG used in household kitchens for cooking purposes remained unchanged at Rs 1,053 per 14.2-kg cylinder.

This is because the rates of domestic cooking gas were way lower than cost and now with a drop in international prices, they are at breakeven, industry sources said.

Commercial LPG rates, on the other hand, have largely been aligned with cost and so they have moved in tandem with the rise and fall in international prices.

Rates differ from state to state depending on the incidence of local taxes. Prices are benchmarked to international rates of jet fuel and LPG, which do not necessarily move in sync with each other. Prices are determined by global demand and supply situation.

While commercial LPG rates are revised once a month, ATF prices are changed every fortnight. But there was no change in jet fuel prices on October 16. Prior to that, they were cut Rs 5,521.17, or 4.5 per cent, on October 1 and by 0.7 per cent on September 1.

Petrol and diesel prices, however, continued to remain on freeze for a record near seven months. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62.

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