Steep hike has been announced in the fuel prices and on the non-subsidised cooking gas. Coupled with this, the increase of Service Tax from 14.5% to 15% is set to impact the consumers across the country. Aviation turbine fuel or jet fuel price too was on Wednesday hiked by a steep 9.2%.
In a late night development, Petrol price was hiked by Rs 2.58 a litre and diesel by Rs 2.26 per litre, while the price of non-subsidised cooking gas was raised by Rs 21 per cylinder.
This is the second increase in rates of Petrol and Diesel this month. Petrol will now cost Rs 65.60 per litre in Delhi after the increase while diesel will cost Rs 53.93/litre. Prices were last hiked on May 17.
“The current level of international product prices of petrol and diesel and INR-USD exchange rate warrant increase in price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision,” said Indian Oil Corp (IOC) release Wednesday night.
Meanwhile, in the fourth straight monthly increase in rates on global cues, ATF price in Delhi was increased by Rs 3,945.47 per kilolitre, or 9.2 per cent, to Rs 46,729.48 per kilolitre, the oil companies announced.
The hike comes on the back of 1.5 per cent increase effected on May 1 and a steep Rs 3,371.55 (8.7 per cent) hike on April 1. Prior to that, rates were hiked by steep 12 per cent, or by Rs 4,174.49, on March 1.
Rates vary at different airports because of differential local sales tax or value-added tax (VAT).
Jet fuel constitutes over 40 per cent of an airline’s operating cost and the latest price increase will add to the financial burden of cash-strapped carriers, reported news agency PTI. No immediate comment was available from airlines on the impact of the price increase on passenger fares.
Simultaneously, the oil firms raised prices of non-subsidised LPG, which consumers buy after exhausting their quota of 12, by Rs 21 per 14.2-kg cylinder, the second monthly increase in rates.
Non-subsidised cooking gas (LPG) now costs Rs 548.50 in Delhi as against Rs 527.50 previously. The hike comes on the back of a Rs 18 per cylinder increase in price on May 1.
Subsidised LPG costs Rs 419.18 per 14.2-kg cylinder in Delhi.
The three fuel retailers — Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum — revise jet fuel and non-subsidised LPG prices on the first day of every month, based on the average international price in the preceding month.
(With inputs from the PTI)