Petrol & diesel price hike in near future not ruled out: Govt sources
NEW DELHI, May 1: The price of commercial LPG was hiked by the steepest ever Rs 993 per 19-kg cylinder on Friday, marking the third straight monthly increase due to rising global energy prices linked to the West Asia conflict.
The announcement has triggered a severe political storm in India, with the Leader of Opposition in Lok Sabha, Rahul Gandhi, labelling it an “election bill” passed by the government.
A 19-kg commercial LPG – used by establishments such as hotels and restaurants – now costs a record Rs 3,071.5 in Delhi as against Rs 2,078.50 previously. Rates were last increased by Rs 195.50 per cylinder on April 1. Prior to that, prices had gone up by Rs 114.5 per 19-kg cylinder on March 1. In three increases, commercial LPG rates have gone up by Rs 1,303.
Alongside, prices of 5-kg FTL or market-priced LPG cylinders were hiked from Rs 549 to Rs 810.50 per bottle. The 5-kg FTL cylinder now costs just a shade lower than the Rs 913 rate for a 14.2-kg cylinder used in household kitchens (called domestic LPG).
Prices of domestic cooking gas LPG – the one used in household kitchens – remained unchanged. Domestic LPG rates were last hiked by Rs 60 per 14.2-kg cylinder on March 7. It costs Rs 913 per 14.2-kg cylinder in Delhi. State-owned Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum revise ATF and LPG prices on the first day of every month based on international benchmarks and the exchange rate.
Aviation fuel prices for domestic airlines were left unchanged on Friday, providing stability for local carriers and sparing flyers any immediate cost increase, while commercial LPG and 5-kg cylinders recorded their steepest-ever rate hike, in line with a surge in international energy costs.
A month after jet fuel prices for them were more than doubled, state-owned oil firms hiked aviation turbine fuel (ATF) rates for international airlines by USD 76.55 per kilolitre, or 5.33 per cent, to USD 1,511.86 per kl.
The ATF for domestic airlines will continue to be priced at Rs 1,04,927.18 per kl as state-owned oil companies have decided to absorb the rise in global fuel prices to protect airlines and consumers.
Also, prices of bulk diesel, used by industrial users like telecom signal towers, were increased from about Rs 137 per litre to over Rs 149 a litre. These rates compare to the Rs 87.62 a litre price of diesel available at petrol pumps.
Even on April 1, when rates for international carriers were more than doubled to USD 1,435.31 per kl, oil companies had increased jet fuel price for domestic airlines by 25 per cent, adopting a calibrated approach in passing on the increase that had become necessary because of the West Asia war-linked surge in international energy prices.
The decisions on ATF by state-owned oil companies will come as a relief to domestic carriers like Air India, IndiGo and SpiceJet, who in the run-up to the scheduled monthly revision warned of the sector being under “extreme stress”.
Their association, Federation of Indian Airlines (FIA), had in a letter to the government stated that “unprecedented increase in ATF cost has moved the airline’s operation from 30-40 per cent to 55-60 per cent, creating completely non-operatable conditions for airlines.”
Prices vary from state to state depending on local taxes like VAT.
Meanwhile, government sources said on Friday that an increase in petrol and diesel prices in the near future is not ruled out as losses mount from a four-year-old freeze in retail rates despite the sharp rise in global crude oil prices.
International crude oil prices this week climbed to a four-year high of USD 126 per barrel before cooling down slightly, but remained above USD 110 a barrel as ship transits through the Strait of Hormuz remained restricted and US and Iranian leaders traded barbs amid stalled peace talks.
Analysts had earlier flagged the possibility of price increases of Rs 25-28 per litre after the end of polling for assembly elections in West Bengal on April 29. (PTI)
