LPG cyclinder price cut by Rs. 113 as crude prices fall

New Delhi: Price of non-subsidised cooking gas (LPG) was on Monday cut by a steep Rs. 113 per cylinder and that of jet fuel (ATF) by 4.1% as international oil rates slumped to multi-year lows.

A 14.2-kg cylinder of non-subsidised LPG will now cost Rs. 752, down from Rs. 865 previously, in Delhi, oil companies announced on Monday.

This is the fifth straight reduction in rates of non-subsidised or market priced LPG, which the customers buy after exhausting their quota of 12 cylinders at subsidised rates, since August.

In five monthly reduction, non-domestic LPG rates have been slashed by Rs. 170.5 per cylinder, bringing the price at three-year lows.

On similar lines, the price of aviation turbine fuel (ATF), or jet fuel, at Delhi was cut by Rs. 2,594.93 per kilolitre, or 4.1%, to Rs. 59,943 per kilolitre (kl).

This is the fifth straight monthly reduction in rates. This reduction follows a steep 7.3% or Rs. 4,987.7 per kl, cut in prices on November 1.

Since August, ATF prices have been cut by 14.5% or Rs. 10,218.76 per kl and rates have dipped below Rs. 60,000 per kl level for the first time in three years.

Brent, the benchmark grade for more than half of the world's oil, have dropped to $68.34 a barrel, the lowest level since October 2009.

Prices declined 18% last month and are 38% lower in 2014. In Mumbai, jet fuel will cost Rs. 61,695 per kl from Monday as against Rs. 64,414.98 per kl previously. The rates vary because of differences in local sales tax or VAT.