Yes, there is a Steep Decline in Non-subsidized LPG and Jet Fuel! As the international oil rates were seen on their trough which is the lowest since 2009, prices of non-subsidized LPG cylinder were also lowered by Rs. 43.50 on Thursday. Oil companies announced that the prices of non-subsidized gas cylinders would now cost Rs. 708.50. Previously it was Rs. 752 in Delhi.
As a matter of fact, this is the fifth reduction in the cost of the non-subsidized cylinder which consumers would buy after exhausting their 12 cylinders a year, which they would get at the subsidized rates. Last reduction in the prices of non-subsidized cylinders were recorded in December, 2014 when it was brought down by Rs. 113. Currently the cost of the subsidized cylinder in Delhi is Rs. 417 so there is no change recorded in the prices of the subsidized cylinder. As Brent crude sank by 48 % in 2014, more than half of the world’s oil prices slashed down quite steep. This happened as the Organization of Petroleum Exporting Countries (OPEC) gave up their ground to battle for a share among the supply clog. Moreover Brent crude declined to $ 57.33 a barrel, which is seen as the lowest price since 2009.
Talking about the jet fuel prices, it sank by 12.5 percent, which was the sixth reduction since August as a five year low level is recorded in the international oil level. The aviation turbine fuel (ATF) or jet fuel now costs Rs. 52,422.92 per kilolitre which is less than the current diesel prices. Reduction of Rs. 7,520.52 was made per kl as announced by the oil companies on Thursday. ATF prices too saw a steep decline in December 2014 when it was reduced by 4.1 per cent. Now the ATF prices are at their lowest level since February 2011. On a business level, jet fuel sustains the share of over 40 % in operating costs of the airline and no doubt these price cuts would lower the burden on the aviation companies.
The retailers owned by the state that are Hindustan petroleum corp (HPCL), Indian oil corp (IOC) and Bharat petroleum corp (BPCL) revise their oil prices on 1st of each month considering the exchange rates and average importing costs.