Mumbai : Aviation stocks were in limelight today, surging by up to 9.5 %, after ATF or jet fuel price was slashed by 10 %. Shares of SpiceJet zoomed 9.44 % to end at Rs 82.35 on BSE. Similarly, InterGlobe Aviation surged 8.73 % to Rs 1,341.75 and Jet Airways jumped 8.28 % to Rs 760.60 at close of trade. All the three listed airlines touched their respective 52-week highs during the day.
Aviation Turbine Fuel (ATF) price in Delhi was reduced by Rs 4,428 per kilolitre (kl) or 9.99 % to Rs 39,892.32 per kl, oil companies announced on Friday. This is the second reduction in a row. Prices were cut by 1.17 per cent on December 1.
Rates vary at different airports because of differential local sales tax or value-added tax (VAT). Jet fuel constitutes over 40 per cent of an airline’s operating costs and the price cut will reduce the financial burden on cash-strapped carriers.
Simultaneously, the oil firms raised prices of non-subsidised LPG, which consumers buy after exhausting their quota of subsidised cooking fuel, by Rs 49.5 per 14.2-kg bottle. Non-subsidised cooking gas (LPG) now costs Rs 657.50 in Delhi. This is the third hike in rates in as many months.
Non-subsidised LPG price was last hiked by Rs 61.50 on December 1. Prior to that rates were increased by Rs 27.5 per cylinder on November 1. Non-subsidised or market-priced LPG is one that consumers buy after exhausting their quota of 12 bottles of 14.2-kg each at subsidised rates in a year.
Subsidised LPG costs Rs 419.33 per 14.2-kg cylinder in Delhi.
Also, the price of non-subsidised kerosene, available outside the ration shop, has been cut to Rs 43,194.82 per kl (Rs 43.19 a litre) from Rs 44,246.47 per kl.
