LPG price hiked again by Rs 25; jet fuel price up 6.5%

Cooking gas LPG price was on Monday hiked by Rs 25 per cylinder across all categories, including subsidised fuel and those availed by Ujjwala scheme beneficiaries - the fourth increase in rates in a month's time.

LPG prices have gone up by Rs 125 per 14.2-kg cylinder since the beginning of February, price data from state-owned oil marketing companies showed.

Also, jet fuel prices were hiked by a steep 6.5 per cent on the back of a rally in international oil prices.

Read | Easier access to cooking gas, 1 cr more free LPG connections in 2 years: Oil Secretary

A 14.2-kg cylinder in Delhi now costs Rs 819 as against Rs 794 at which they were supplied on Sunday.

The increase is applicable across all categories, including subsidised and non-subsidised users.

LPG is available only at one rate, market price, across the country. The government, however, gives a small subsidy to select customers.

However, this subsidy has been eliminated in metros and major cities through successive price increases over the past couple of years. So, in places like Delhi, there is no subsidy paid to customers since May 2020 and all LPG users pay the market price, which currently is Rs 819.

An oil company official said a small subsidy is paid to customers in remote and far-flung areas to make up for the higher price arising from freight charges.

LPG prices were hiked first by Rs 25 per cylinder on February 4, followed by a Rs 50 per cylinder increase on February 15 and Rs 25 raise on February 25.

Prices have been on the rise since December and rates have cumulatively gone up by Rs 175 per cylinder.

Simultaneously, aviation turbine fuel or ATF price was hiked by Rs 3,663 per kilolitre, or 6.5 per cent, to Rs 59,400.91 per kl in the national capital, according to a price notification of state-owned fuel retailers.

This is the third increase in jet fuel prices since February. Rates were increased by 3.6 per cent on February 16, and by Rs 3,246.75 per kl on February 1.

The increase in rates will add to the margin woes of airlines who continue to operate flights at less than capacity, amid pandemic-driven travel restrictions.

Brent crude oil prices on Monday rose to $65.49 per barrel - the highest in more than a year - on optimism in the global economy and on hopes for improving oil demand as vaccines are being rolled out.

Meanwhile, petrol and diesel prices were unchanged for the second day in a row after hitting an all-time high.

Petrol is priced at Rs 91.17 per litre in Delhi and at Rs 97.57 in Mumbai. Diesel comes for Rs 81.47 a litre in the national capital and for Rs 88.60 in Mumbai.

The rates of regular petrol had last month crossed Rs 100-mark at a few places in Rajasthan and Madhya Pradesh, which levy the highest VAT on the fuel in the country.

Price of branded/premium or additive mixed petrol in Mumbai crossed Rs 100 mark on Saturday. It comes for Rs 100.35 a litre now. Higher taxes are levied on branded or premium grade petrol and diesel. In Delhi, the same grade fuel costs Rs 94 a litre.

While petrol and diesel prices are revised on a daily basis, ATF and LPG rates are revised on the 1st and 16th of every month. Sometimes, LPG rates have seen mid-month revisions as well. Petrol price has gone up by Rs 4.87 per litre in the last two months. Diesel rates have increased by Rs 4.99 during the same period.

Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 a litre on diesel.