Jet fuel prices cut by sharp 12%, non-subsidised LPG slashed by Rs 82.5 per cylinder

Aviation turbine fuel (ATF), or jet fuel, on Monday got cheaper by a steep 12% and rates of non-subsidised cooking gas LPG were slashed by Rs 82.5 per cylinder as global prices continue to tumble.

ATF price in Delhi was reduced by Rs 4,765.5 per kilolitre (kl), or 11.9%, to Rs 35,126.82 per kl, oil companies said on Monday.

This is the third straight monthly reduction. Prices were last cut by 10% on January 1.

Rates vary at different airports because of differential local sales tax or value-added tax (VAT).

Jet fuel constitutes over 40% of an airline's operating cost and the price cut will lighten the financial burden on cash-strapped carriers.

No immediate comment was available from airlines on the impact of the price reduction on passenger fares.

Simultaneously, the oil firms cut prices of non-subsidised LPG, which consumers buy after exhausting their quota of 12, by Rs 82.5 per 14.2-kg bottle.

Non-subsidised cooking gas (LPG) now costs Rs 575 in Delhi as against Rs 657.50 previously.

The reduction comes on the back of three consecutive price hikes in as many months. Rates were last hiked by Rs 49.5 on January 1.

Prior to that, non-subsidised LPG price was raised by Rs 61.50 on December 1 and by Rs 27.5 per cylinder on November 1.

Subsidised LPG costs Rs 419.33 per 14.2-kg cylinder in Delhi.

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