Non-subsidised LPG cylinder price cut by Rs 21; Jet fuel by 3%

The price of non-subsidised cooking gas (LPG) was cut by Rs 21 per cylinder on Tuesday while that of aviation turbine fuel (ATF) or jet fuel was reduced by a steep 3 per cent on the back of falling international oil rates.

This is the third straight reduction in rates of non-subsidised LPG since July.

A non-subsidised 14.2-kg cooking gas cylinder will now cost Rs 880 in Delhi - down from Rs 901 earlier, according to Indian Oil Corp (IOC). A subsidised LPG cylinder costs Rs 414 in the state.

Jet fuel price was slashed by Rs 2,077.62 per kilo-litre, or 2.98 per cent, in Delhi to Rs 67,525.63 per kl, India's largest fuel retailer said.

This is the third reduction in jet fuel rates since July. Declining international oil prices have made imports cheaper, resulting in price reduction.

In Mumbai, jet fuel costs Rs 69,610.50 per kl as against Rs 71,829.42 per kl earlier, IOC said. The rates vary because of differences in local sales tax or VAT.

Jet fuel constitutes over 40 per cent of airlines' operating costs and the price cut will ease the financial burden of cash-strapped carriers.

No immediate comment was available from the carriers on the impact of the price cut on passenger fares.

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