ATF price cut by 12 pc; freeze on petrol, diesel price continues

Jet gas costs had been slashed

Jet gas costs had been slashed by 12 per cent after oil companies reverted again to fortnightly revisions to go on the advantage of falling crude oil costshowever, charges of petrol and diesel remained unchanged for the seventh straight day to regulate the hike in excise obligation.State-owned oil companies cut aviation turbine gas (ATF) price by Rs 6,687.75 per kilolitre (kl) or 11.76 per cent, to Rs 50,171.26 per kl – the bottom since September 2017, in keeping with a price notification of oil advertising and marketing corporations.

This is the third straight discount in jet gas charges since February, which make up for as a lot as 40 per cent of an airline’s operating value. In all, charges have fallen by Rs 14,152.5 per kl or 22 per cent.

ATF costs, which already had been decreasing than petrol and diesel, at the moment are even decreased than the charges of non-subsidised kerosene which comes for Rs 58,818.07 per kl, in keeping with price notification of oil companies.

Petrol price remained unchanged at Rs 69.59 a litre in Delhi and diesel at Rs 62.29 for the seventh day in a row, as oil companies adjusted the Rs three per litre hike in excise obligation on the 2 fuels affected by the federal government on March 13.

The excise obligation hike, which might give the federal government Rs 39,000 crore further incomemight have led to a rise in retail costs by Rs three per litre everyhowever, the oil corporations adjusted them in opposition to the autumn in worldwide crude costs which halved to lower than USD 30 per barrel.

ATF costs had been deregulated in 2002, after which Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) revised charges on 1st and 16th of each month after accounting for adjustments in benchmark worldwide costs and overseas change charges within the earlier fortnight.

In November 2012, nevertheless, they determined to revise charges on 1st of each month.

But on Saturday, oil companies determined to revert to fortnightly revisions to go on the advantage of falling worldwide oil costs to the airways.

Petrol and diesel coststhat are modified on each day foundationnevertheless remained unchanged since March 16.

ATF price involves Rs 50.17 per litre and is cheaper than the current fee for petrol and diesel.

The discount in jet gas costs comes as a reduction to airline trade which has seen widespread flight cancellations and journey bans in view of the coronavirus pandemic.