The Government on Wednesday increased the price of non-subsdised liquefied petroleum gas (LPG) by Rs 19 per cylinder on the back of a rise in international rates.
This marks a fifth straight monthly hike in the prices.
With effect from January 1, the non-subsidised LPG rates were revised to Rs 714 per cylinder in Delhi and Rs 684.50 per cylinder in Mumbai.
In December, the prices had stood at Rs 695 per cylinder and Rs 665 per cylinder respectively, according to the Indian Oil Corporation.
The price of LPG (per 14.2 kilograms) has been increased by a cumulative Rs. 139.5 per cylinder in Delhi and Rs. 138 per cylinder in Mumbai so far since August – an increase of 24.28 per cent and 25.25 per cent respectively.
While fixing the rates of the cylinders, the state-run fuel retails take an international benchmark of LPG and exchange rates of US dollars against rupees into consideration.
Consumers have to buy the LPG at the market price. The government, however, has subsidized 12 cylinders of 14.2 kg in a year per household, through which the customers get a certain percentage of money into their accounts as a direct benefit of the scheme.
The amount for subsidy varies from time to time as it depends on the international benchmark LPG rate and foreign exchange rate. If the market goes up, people get a higher subsidy. But depending on the current market tax rates and the government’s decision on subsiding a part of the price also results in rise or fall in the price of subsidised cylinders.
Meanwhile, Jet fuel or ATF price has been hiked by 2.6 per cent.
Price of Aviation Turbine Fuel (ATF), used to power aeroplanes, was raised by Rs 1,637.25 per kilolitre, or 2.6 per cent, to Rs 64,323.76 per kl in Delhi, according to a price notification of state-owned fuel retailers.
This is the second straight monthly increase in rates warranted due to firming up of prices in the international market.
In India, which is dependent on imports to meet 84 per cent of its oil needs, prices of domestic fuels are at par with benchmark international prices.
ATF price was on December 1 increased by a marginal Rs 13.88 per kl.
The two back-to-back increases have push jet fuel prices to their highest since June 2019.
The hike will add to the burden of cash strapped airlines that are already reeling under pressure from cut-throat competition in the sector.
(With PTI inputs)