In possibly the sharpest-ever cut in rates ever since aviation turbine fuel (ATF) pricing was de-regulated in April 2012, oil companies slashed ATF prices by steep 12.5% as international oil prices slumped to five-year low levels. This marks a sixth straight month reduction in ATF prices, which sums up to 34% till January 2015. The price was last cut by 4.1%, or Rs 2,594.93 per kl, on December 1.
ATF price was down Rs 7861, or 11.3%, to Rs 61525 per kilolitre (kl) in Kolkata. Meanwhile, it dropped by Rs 8099, or 12.4%, to Rs 57457 per kl in Chennai, and cut by Rs 7833, or 12.7%, to Rs 53862 per kl in Mumbai. Rates at different airports vary because of differential in local sales tax or value-added tax (VAT).
This four-year low in ATF prices is expected to ease financial burden of the airlines as jet fuel accounts for 40-50% of an airline's operating cost in the country, but is unlikely to bring cheer to flyers as airlines are unlikely to cut fares proportionately given their liquidity woes.
Besides, the price of 14.2-kg non- subsidized LPG cylinder has been cut to Rs 708.50 from Rs 752 previously in Delhi. This marks fifth straight reduction in rates of non- subsidized or market-priced LPG, which the customers buy after exhausting their quota of 12 cylinders at subsidised rates, since August. A subsidised LPG refill currently costs Rs 417 in Delhi. In six monthly reductions, non-domestic LPG rates have been slashed by Rs 214 per cylinder, bringing the price to a three-year low.
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