Aviation turbine fuel price hiked by 50% even as airlines struggle to stay afloat

Oil marketing companies have hiked the prices of non-subsidised cooking gas and aviation turbine fuel (ATF) with effect from Monday.

The price of the 14.2-kilogram cylinder of non-subsidised LPG gas in Delhi has been raised by Rs 11.50 from May to Rs 593 per cylinder.

In Kolkata, Mumbai and Chennai, the price of LPG has been raised at Rs 616, Rs 590.50 and Rs 606.50, against Rs 584.50, Rs 579 and Rs 569.50 per cylinder respectively. The highest increase was witnessed in Chennai with a hike of Rs 37 from the price in May.

The government currently subsidises 12 cylinders of 14.2 kilograms each per household in a year. Additional purchases have to be made at the market price.

Meanwhile, ATF prices have increased by nearly 50% in June, which would come as a major jolt to the already struggling aviation sector. ATF is one of the major cost components for airlines.

Price of ATF in the national capital has been raised by Rs 11,030.62 to 33,575.37 per kilolitre, according to data on the Indian Oil Corp's website.

Similarly, that in Kolkata, Mumbai and Chennai has been raised to Rs 38,543.48, Rs 3,070.56 and Rs 34,569.30 per kilolitre.

In a statement on Sunday, Indian Oil Corp said that the retail selling price of LPG in Delhi market for the month of May 2020 was reduced from Rs 744 to Rs 581.50 per cylinder for all consumers in line with drop in International prices.

"For the month of June, there has been an increase in International prices of LPG. Due to increase in the prices in international market, the RSP of LPG in Delhi market will be increased by Rs 11.50 per cylinder," it said.

It however said that, this increase will not impact the Pradhan Mantri Ujjwala (PMUY) beneficiaries, as they are covered by the Pradhan Mantri Garib Kalyan Yojana, and entitled to a free cylinder till June 30.