NEW DELHI: On the heels of the Railways raising fare by 1 to 4 paise per km from the New Year day, all public sector oil companies also raised the price of the non-subsidised LPG (liquified petroleum gas) or cooking gas by Rs 19 per 14.2 kg cylinder, which is the fifth straight monthly hike as it has gone up by Rs 139.50 per cylinder since September to reach now Rs 714 per cylinder in Delhi.
The price rise in Mumbai, Kolkata and Chennai is Rs 19.5, Rs 21.5 and Rs 20 respectively and as of now, the LPG price in these metropolis stands at Rs 685, Rs 747 and Rs 734 per cylinder. The cumulative increase in Mumbai is Rs 138 per cylinder.
Also, the price of Kerosene sold through the public distribution system in Mumbai was raised by 26 paise to reach Rs 35.58 per litre in accordance a 2016 decision to increase it by 25 paise a litre every month till the subsidy is eliminated. Delhi has no issue since it has been
declared kerosene-free.
The Aviation Turbine Fuel (ATF) prices also recorded a 2.65% surge in Delhi, Mumbai, Chennai and Kolkata on Wednesday, though at Rs 64.32 per litre it is still less than petrol and diesel. A litre of petrol in the national capital costs Rs 75.14 and dieel Rs 67.96. The hike will add to the burden of the cash-strapped airlines reeling under the cot-throat competition.
Price of ATF, used to power the aircraft, was raised by Rs 1,637.25 per kilolitre to hit Rs 64,323.76 per kl in Delhi, the highest since June 2019 and the second straight monthly increase in rates warranted by firming up of the crude oil prices in the international market. On December 1, ATF price was marginally raised by Rs 13.88 per kilolitre.
India is dependent on imports to meet 84 per cent of its oil needs and the prices of the domestic fuels are kept at par with the benchmark international prices.
Earlier on December 1, the price of 19 kg cylinders were revised upwards to Rs 1.241 per cylinder in Delhi and Rs 1,190 in Mumbai.
The government subsidises 12 cylinders of 14.2 to the households in 12 months. Any additional requirement has to be met by buying the non-subsidised rate. Even the subsidy varies from month to month. It is dependent on factors such as changes in the average international benchmark LPG prices and foreign exchange rates determine the subsidy amount.
