Costlier LPG, train fares Narenda Modi govt's New Year gifts

Price of 14.2-kg cylinder rises to R714 from Rs 695 previously. Representation pic/AFP

New Delhi: Jet fuel or ATF price was on Wednesday hiked by 2.6 per cent and that of non-subsidised cooking gas LPG by Rs 19 per cylinder on the back of a rise in international rates. Price of Aviation Turbine Fuel (ATF), used to power aeroplanes, was raised by Rs 1,637.25 per kilolitre, or 2.6 per cent, to Rs 64,323.76 per kl in Delhi, according to a price notification of state-owned fuel retailers.

This is the second straight monthly increase in rates warranted due to firming up of prices in the international market. In India, which is dependent on imports to meet 84 per cent of its oil needs, prices of domestic fuels are at par with benchmark international prices. ATF price was on December 1 increased by a marginal Rs 13.88 per kl. The two back-to-back increases have pushed jet fuel prices to their highest since June 2019.

The hike will add to the burden of cash-strapped airlines that are already reeling under pressure from cut-throat competition in the sector.

LPG to cost Rs 714

Simultaneously, oil companies also raised the price of non-subsidised LPG to Rs 714 per 14.2-kg cylinder from Rs 695 previously. This is the fifth straight monthly increase in cooking gas prices since September 2019. In all, non-subsidised cooking gas prices have gone up by Rs 139.50 per cylinder in the last five months. LPG and ATF prices are revised on 1st of every month based on the average international rate for benchmark fuel and foreign exchange rate in the preceding month.

On New Year's Eve, the railways had announced fare hike across its network, excluding suburban trains, effective from January 1, 2020. While suburban fares remain unchanged, ordinary non-AC, non-suburban fares were increased by 1 paise per km of journey. The railways also announced a two paise/km hike in fares of mail/express non-AC trains and four paise/km hike in the fares of AC classes.

The fare hike is also applicable to premium trains such as Shatabdi, Rajdhani and Duronto, according to the order. In the Delhi-Kolkata Rajdhani, which covers a distance of 1,447 km, the hike at the rate of 4 paise per km will be around Rs 58. According to the order, there will not be any change in the reservation fee and superfast charge and the hike in fares will not be applicable to tickets already booked.

Criticising the rise in prices, CPI(M) general secretary Sitaram Yechury on Wednesday said, "Modi govt starts the year. After railway passenger fare hikes, another attack on peoples' livelihoods. All this in the wake of sharp job losses, food price inflation and record fall in rural wages. New year gift from the Modi government".

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