In what could be a big blow to common man ahead of this festive season, the price of non-subsidised cooking gas (LPG) was hiked by Rs 15.5 per cylinder, according to a price notification released by oil firms on Sunday. Non-subsidised or market priced LPG, which consumers buy after exhausting their annual quota of 12 cylinders of 14.2-kg at subsidised rates, will now cost Rs 590.00, up from Rs 574.50, with effect from today onwards.
Moreover, the monthly 25 paise per litre increase in kerosene price continued for the 26th month in a row. While Delhi has been declared a kerosene-free city after LPG penetration reached 100 per cent of the population, the subsidised fuel in Mumbai now costs Rs 33.27 per litre as compared to Rs 32.97 a litre last month. Rates have been increased by 25 paise per litre every month since July 2016 with a view to eliminating subsidy on the cooking fuel.
Price of subsidised kerosene, sold through the public distribution system on ration cards, has more than doubled since the 25 paise hikes were introduced. The fuel was priced at Rs 15.02 per litre in Mumbai before the hike was introduced.
Non-subsidised or market-priced kerosene rate was cut to Rs 66,587.40 per kl (Rs 66.58 per litre) in Mumbai from Rs 66,693.60 per kl (Rs 66.69 per litre) in June. At the current rate, it would take another two years to eliminate the entire subsidy on kerosene.
Simultaneously, fuel retailers also revised the jet fuel price, slashing it by about 1 per cent to a four-month low on softening international oil prices. Aviation Turbine Fuel (ATF) price in Delhi was cut by Rs 596.62 per kilolitre or 0.9 per cent, to Rs 62,698.86 per kl. This is the third straight monthly price reduction. Jet fuel prices were last cut by 5.8 per cent or Rs 3,806.44 per kl on August 1.
State-owned fuel marketing companies revise ATF prices on the 1st of every month based on average of benchmark international oil price in the previous month. In Mumbai, home to the country's busiest airport, ATF price was cut to Rs 62,712.17 per kl from Rs 61,199.79 per kl. Reduction in ATF rates will bring relief to cash strapped airlines.
(With inputs from agencies)