NEW DELHI: Prices of subsidised LPG on Sunday have been raised by Rs 2 per cylinder an 8th increase in cooking gas price in seven months while for kerosene government has allowed state-owned oil companies to up prices by 25 paise a litre every fortnight for 10 months.
Aviation turbine fuel (ATF) prices too have seen a steep hike of 8.6 per cent per kilolitre.
With this hike subsidised 14.2-kg LPG cylinder will now cost Rs 434.71 a bottle against Rs 432.71 previously, according to state-owned Oil companies.
ATF or jet fuel price was hiked by Rs. 4,161 per kilolitre (kl), or 8.6 per cent, to Rs. 52,540.63 per kl in Delhi. The hike comes on the back of a 3.7 per cent cut in rates last month.
This is the eighth 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 December 1 by Rs 2.07 per cylinder.
The government had last year decided to take the diesel route for eliminating subsidies on LPG and kerosene. Diesel prices were deregulated in November 2014 after the previous UPA government effected 50 paise hike every month to bridge the gap with the retail price and its international cost.
The Rs 2 per cylinder hike in LPG every month is also aimed at achieving the same purpose.
For kerosene, the government has allowed companies to raise the prices by 25 paise a litre every fortnight for 10 months. The 10th hike in kerosene, since July, was effected today.
A litre of kerosene now costs Rs 18.28 in Mumbai.
Prices of non-subsidised cooking gas (LPG), which consumers buy after exhausting the quota of 12 bottles of 14.2-kg each per household in a year, was hiked by Rs 1 to Rs 585. The hike comes on the back of Rs 54.5 hike on December 1.
Oil firms revise the rates of ATF and cooking gas on 1st of every month based on oil price and foreign exchange rate in the preceding month.