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Inflation: ATF price sees steep hike by 6.5%, Cooking LPG gas by Rs 25 per cylinder

Petro products kept rising on Monday as well with cooking gas LPG price hiked by Rs 25 per cylinder across all categories and aviation turbine fuel or ATF price hiked by 6.5 percent

After Petrol-diesel and cooking gas LPG, Air Turbine Fuel (ATF) price has also joined the rally
After Petrol-diesel and cooking gas LPG, Air Turbine Fuel (ATF) price has also joined the rally

New Delhi: After Petrol-diesel and cooking gas LPG, Air Turbine Fuel (ATF) price has also joined the rally. On Monday the ATF price has been hiked by Rs 3,663 per kilolitre, or a steep 6.5 percent, to Rs 59,400.91 per kl in the national capital, according to a price notification of state-owned fuel retailers. Simultaneously cooking gas LPG price has been 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.

The prices were hiked on the back of a rally in international oil prices.

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.

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 a 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.

Reacting to the development Congress leader Rahul Gandhi tweeted "LPG cylinder prices rose again. Modi government's options for the public - Close the business - Burn stove - Eat Joomla!"

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 hike is set to add to the margin woes of airlines who continue to operate flights at less than capacity, amid pandemic-driven travel restrictions.

Meanwhile, Brent crude oil prices on Monday rose to USD 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. As a result, petrol and diesel prices were unchanged for the second day in a row after hitting an all-time high.

ALSO READ: After 3-day hiatus, petrol, diesel prices rise again. Here are the new rates

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.

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.

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