ATF or jet fuel price was Thursday hiked by 5.5 per cent on global trends while rates of non-subsidised cooking gas LPG were cut by Rs. 42 per cylinder.
Also, rates of non-subsidised kerosene were increased by Rs. 54 paisa to Rs. 43.18 per litre.
Aviation Turbine Fuel (ATF) price in Delhi was raised by Rs. 2245.92 per kilolitre (kl), or 5.48 per cent, to Rs. 43,184.16 per kl, oil companies announced.
The hike comes after a steep 11.7 per cent or Rs. 5,469.12 per kl cut in rates to Rs. 40,938.24 per kl effected from September 1, the third in straight monthly reduction. Prior to that jet fuel rate was cut by 9.4 per cent to Rs. 46,407.36 on August 1 and by Rs. 2,086.56 per kl to Rs. 51,267.36 on July 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 costs and the price increase will raise the financial burden on cash-strapped carriers.
No immediate comment was available from airlines on the impact of price reduction on passenger fares.
Simultaneously, the oil firms have also cut prices of non-subsidised LPG, which consumers buy after exhausting their quota of subsidised cooking fuel, by Rs. 42 per 14.2-kg bottle.
Non-subsidised cooking gas (LPG) now costs Rs. 517.50 in Delhi.