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27832
Sat, 11/01/2008 - 06:00
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ATF prices cut again; airlines studying situation
New Delhi, Oct 31 (PTI) For the third time in as many months, state-run oil companies Friday slashed jet fuel prices by over Rs 9,400 per kilo litre, or 16.8 percent, a move that would ease the pressure on cash-strapped airlines.
The Aviation Turbine Fuel (A.T.F.) prices have been slashed by about Rs 24,000 per kilo litre since September in tune with falling global oil prices. However according to available information, private airlines wanted to assess the total benefits before they think of passing on the same to air travellers.
Indian Oil, Bharat Petroleum and Hindustan Petroleum cut jet fuel or A.T.F. price in Delhi by Rs 9,429.87 per kl to Rs 47,017.93 per kl, industry officials said.
The cut, which follows similar reductions on September 1 and October 1, would be effective from midnight tonight.
High prices of A.T.F. had put airlines in a tight spot with leading private carriers, including Jet Airways and Kingfisher Airline, which had defaulted on payment to oil companies, demanding a bailout package from the Government earlier this month.
During a recent meeting with Civil Aviation Minister Praful Patel, along with airline executives, Petroleum Minister Murli Deora had come down heavily on private carriers for non-payment of astromical arrears but agreed for a deferred repayment in monthly instalments.
When contacted spokespersons of Jet Airways and Kingfisher said they are evaluating the situation before a decision is taken on passing the benefits of reduced A.T.F. prices to air travelers.
In Mumbai, the home to India's busiest airport, A.T.F. prices were cut by 16.8 percent to Rs 48,656.59 per kilo litre from Rs 58,479.37 per kilo litre.
The third cut in a row has brought down jet fuel prices from Rs 71,028.26 per kl (ex-Delhi). They were first cut to Rs 59,650.17 per kl effective September 1 and then to Rs 56,447.80 per kl from October 1.
"We follow a very transparent system of fixing prices," Indian Oil Corporation (I.O.C.) Chairman Sarthak Behuria said when suggested by some reporters that the company should have not cut A.T.F. prices and use the excess money to make up for losses on sale of diesel, domestic L.P.G. and kerosene.
"How can we do that? Whenever price move down we have to cut (A.T.F. prices) and when they move up, we have increased them," he said.
Till now, the three companies fixed jet fuel prices once every month but from November they will fix them every fortnight - once on first and on 16th of every month. PTI
The Aviation Turbine Fuel (A.T.F.) prices have been slashed by about Rs 24,000 per kilo litre since September in tune with falling global oil prices. However according to available information, private airlines wanted to assess the total benefits before they think of passing on the same to air travellers.
Indian Oil, Bharat Petroleum and Hindustan Petroleum cut jet fuel or A.T.F. price in Delhi by Rs 9,429.87 per kl to Rs 47,017.93 per kl, industry officials said.
The cut, which follows similar reductions on September 1 and October 1, would be effective from midnight tonight.
High prices of A.T.F. had put airlines in a tight spot with leading private carriers, including Jet Airways and Kingfisher Airline, which had defaulted on payment to oil companies, demanding a bailout package from the Government earlier this month.
During a recent meeting with Civil Aviation Minister Praful Patel, along with airline executives, Petroleum Minister Murli Deora had come down heavily on private carriers for non-payment of astromical arrears but agreed for a deferred repayment in monthly instalments.
When contacted spokespersons of Jet Airways and Kingfisher said they are evaluating the situation before a decision is taken on passing the benefits of reduced A.T.F. prices to air travelers.
In Mumbai, the home to India's busiest airport, A.T.F. prices were cut by 16.8 percent to Rs 48,656.59 per kilo litre from Rs 58,479.37 per kilo litre.
The third cut in a row has brought down jet fuel prices from Rs 71,028.26 per kl (ex-Delhi). They were first cut to Rs 59,650.17 per kl effective September 1 and then to Rs 56,447.80 per kl from October 1.
"We follow a very transparent system of fixing prices," Indian Oil Corporation (I.O.C.) Chairman Sarthak Behuria said when suggested by some reporters that the company should have not cut A.T.F. prices and use the excess money to make up for losses on sale of diesel, domestic L.P.G. and kerosene.
"How can we do that? Whenever price move down we have to cut (A.T.F. prices) and when they move up, we have increased them," he said.
Till now, the three companies fixed jet fuel prices once every month but from November they will fix them every fortnight - once on first and on 16th of every month. PTI
