The price of subsidised cooking gas (LPG) was on Tuesday hiked by over Rs 2 per cylinder, the sixth increase in rates in five months, while that of jet fuel was raised by a steep 7.3 per cent in step with global trends. A subsidised 14.2-kg cylinder will now cost Rs 430.64 in Delhi as against Rs 428.59 previously, according to state-owned oil firms. Also, the aviation turbine fuel (ATF) price was hiked Rs 3,434.25 per kilolitre (kl), or 7.33 per cent, to Rs 50,260.63 per kl in Delhi.
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This is the second straight increase in rates, coming on the back of 3.11 per cent rise in October 1. In case of subsidised LPG, this is the sixth increase in price since July when the government decided to go in for a small hikes of up to Rs 2 per bottle every month to cut down its subsidy outgo.
LPG rates were last hiked on October 28 by Rs 1.5 per cylinder on account of hike in commission paid to dealers. In the last monthly hike, rates went up by Rs 2.03 per cylinder on October 1 to Rs 427.09. Prior to that rates were hiked by Rs 1.97 per cylinder on September 1, Rs 1.93 on August 16 and by Rs 1.98 per 14.2-kg cylinder on July 1.
The government had earlier this month decided to take the diesel route for eliminating subsidies on LPG and kerosene. Diesel price was deregulated in November 2014 after the previous UPA government effected 50 paise hikes every month to eliminate subsidies.
The near Rs 2 per cylinder hike in LPG every month is also aimed at doing the same thing. In case of kerosene, the government has allowed state-owned oil companies to raise the price by 25 paise a litre every fortnight for 10 months. The 8th hike in kerosene, since July, was effected on Tuesday. A litre of kerosene now costs Rs 17.17 in Mumbai. Delhi has been declared a kerosene free state and no subsidised PDS kerosene is sold in the national capital.
The price of non-subsidised cooking gas (LPG), which consumers buy after exhausting their quota of 12 bottles of 14.2-kg each per household in a year, was hiked by Rs 37.5 to Rs 529.50.
Oil firms revise rates of ATF and cooking gas on 1st of every month based on oil price and foreign exchange rate in the preceding month.