LPG Now Costlier by Rs 1.50 Per Cylinder, Jet Fuel up By 6%

LPG prices were hiked keeping in line with the govt decision to raise rates monthly to eliminate subsidies by March.

On Sunday, jet fuel or ATF price was hiked by a steep 6 percent on firming international rates, the third straight increase in rates since August.

Aviation turbine fuel (ATF) will now cost Rs 53,045 per kilolitre (kl) in Delhi, Rs 3,025 per kl more than Rs 50,020, which was how much it cost previously, according to a price hike notification by Indian Oil Corp, the nation's biggest fuel retailer.

This the third consecutive monthly hike in ATF price, the last being by 4 per cent (Rs 1,910 per kl) on 1 September.

Also, cooking gas (LPG) price was hiked by Rs 1.50 per cylinder in line with the government decision to raise rates every month to eliminate subsidies by March.

A subsidised 14.2-kg LPG cylinder will now cost Rs 488.68 in Delhi as against Rs 487.18 previously, IOC said.

The hike comes on back of over Rs 7 per cylinder increase effected from 1 September.

Oil Minister Dharmendra Pradhan had on 31 July told the Lok Sabha that the government had asked state-run oil firms to raise subsidised cooking gas (LPG) prices by up to Rs 4 per cylinder every month to eliminate all the subsidies by March next year.

The rates were, however, raised by Rs 2.31 per cylinder on 1 August and the oil companies effected a large hike on 1 September to equalise that, sources said.

Since the implementation of the policy of monthly increases from July last year, subsidised LPG rates have gone up by over Rs 69.50 per cylinder. A 14.2-kg LPG cylinder was priced at Rs 419.18 in June 2016.

(This story has been edited for length)