New Delhi :Jet fuel (ATF) price was cut by a steep 11.3 per cent and now costs less than diesel. Last month, its rate had fallen below the price at which petrol is sold.
While petrol and diesel prices have so far not been changed as per the fortnightly revision, non-subsidised domestic cooking gas (LPG) was cut by Rs 103.5 per cylinder to Rs 605 a cylinder after international oil prices slumped to near six-year lows.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was cut by Rs 5,909.9 per kilolitre, or 11.27 per cent, to Rs 46,513.02 per kl, oil companies announced on Sunday. The reduction, which followed possibly the steepest ever cut of Rs 7,520.52 per kl or 12.5 per cent effected from January 1, has led to ATF becoming cheaper than even diesel.
After Sunday’s cut, it costs Rs 46.51 per litre and is cheaper than diesel that sells at Rs 51.52 per litre.
ATF has a higher octane than petrol and diesel is a heavier fraction in the distillation process. Traditionally, auto fuels being of lesser quality than ATF, would cost less. But four consecutive excise duty hikes since November — totaling Rs 7.75 a litre on petrol and Rs 7.50 on diesel, have reversed this. ATF attracts an excise duty of 8 per cent.
Jet fuel constitutes over 40% of an airline’s operating costs and the price cut will ease the financial burden of cash-strapped carriers. No immediate comment was available from airlines on the impact of price cut on passenger fares.
Govt Wants To Recoup D6 Profit From Panna Fields
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