Good news for aviation companies! ATF price cut by 2.7% on falling global rates

Aviation turbine fuel (ATF) price was on Sunday cut by 2.7 per cent as falling international rates brought down rates down from a four-year high. ATF or jet fuel was cut by Rs 1,942 per kilolitre, or 2.7 per cent, to Rs 68,086 per kl in Delhi, according to state-owned oil firms.

The reduction comes on back of two successive monthly hikes, the last being a steep 7 per cent on June 1 that took rates to four-year high of Rs 70,028 per kl in Delhi. ATF price was on May 1 was raised by Rs 3,890 per kl (6.3 per cent) to Rs 61,450 per kl.

Simultaneously, oil firms raised the price of subsidised LPG by Rs 2.71 per cylinder to Rs 496.26. The hike on back of a Rs 2.34 per cylinder increase on June 1.

A household is entitled to 12 cylinders of 14.2-kg each at subsidised rates in a year. Any quantity beyond that is to be bought at market rate.

The price of non-subsidised cooking gas was also hiked by Rs 55.50 to Rs 754. On June 1, rates were raised by Rs 48.50 per bottle.

Kerosene price was hiked by 26 paise with a view to eliminate the subsidy.

While Delhi has been declared a kerosene-free city, a litre of the fuel costs Rs 25.29 in Mumbai now, up from Rs 25.03 previously.

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Oil companies have since July 1, 2016, been raising the retail selling price of PDS kerosene by about 25 paise a litre. Rates have since then risen by over Rs 10 per litre. A litre of kerosene used to cost Rs 15.02 on July 1, 2016, in Mumbai and now costs Rs 25.29.

State-owned fuel retailers revise rates of ATF, LPG and kerosene on 1st of every month based on average international rate and rupee-US dollar exchange rate in the preceding month.