The Telegraph
Tuesday , July 1 , 2014
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Prices of LPG and jet fuel also marked up

New Delhi, Jul 1 (PTI): The oil marketing companies on Tuesday marked up the price of non-subsidised cooking gas (LPG) by Rs 16.50 per 14.2kg cylinder and that of jet fuel by Rs 414 per thousand litres, citing the surge in international oil prices caused by the Iraq crisis.

On Monday, they had marked up petrol and diesel prices by Rs 1.69 a litre and 50 paisa a litre respectively.

Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp revise the prices of jet fuel and non-subsidised LPG prices on the first of every month, based on the average international prices in the preceding month.

Tuesday’s mark up on non-subsidised LPG is the first in the last six months, and breaks the declining trend that began in February with a price cut of Rs 107 per cylinder. This was followed by cuts of Rs 53.5 in March, Rs 100 in April, Rs 52 in May and Rs 23.50 last month.

Each non-subsidised 14.2-kg cooking gas cylinder will now cost Rs 922.50 in Delhi, up from Rs 906, according to IOC, the nation's largest oil firm. Customers buy non-subsidised cylinders only after they have used up their quota of 12 subsidised cylinders a year.

A subsidised LPG cylinder in Delhi costs Rs 414.

IOC said losses on LPG have risen to Rs 449 per subsidised cylinder from Rs 432.71 in the previous month. The loss was Rs 762.50 in January.

Separately, the oil companies increased the price of jet fuel or aviation turbine fuel (ATF) at Delhi by Rs 413.78 per kilolitre (kl), to Rs 70,161.76 per kl.

The increase follows three straight monthly reductions, the last one of Rs 1,285.89 per kl, or 1.81 per cent, which came into effect on June 1.

In Mumbai, jet fuel will cost Rs 72,411.21 per kl as against Rs 71,940.36 per kl previously, IOC said.

The rates vary because of differences in local sales tax or VAT.

Jet fuel accounts for over 40 per cent of an airline's operating costs and the price hike will increase the financial burden of cash-strapped carriers.

No immediate comments were available from airlines on the impact of the price increase on passenger fares.