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ATF gets cheaper by 3% on Rupee's appreciation

By Religare

ATF gets cheaper by 3% on Rupee's appreciation
In a much-needed relief to the beleaguered aviation industry of India, the Oil Marketing Companies (OMCs) slashed the jet fuel prices by 3 per cent due to recent rupee's appreciation against the US dollar, as foreign investments revived following government's reforms measures.

At Delhi Airport's T3 terminal, Aviation Turbine Fuel (ATF) prices were reduced by Rs 2,117 per kilolitre (kl), or 3 per cent, to Rs 68,399 per kl with effect from midnight, according to Indian Oil Corp.

The cut of 3 per cent has come after OMCs raised ATF prices five times since July amid rupee's depreciation.

Jet fuel costs 40 per cent of an airline's operating costs and the reduction in its price will bring some relief to the ailing airlines of India.

The three OMCs—India Oil, Hindustan Petroleum and Bharat Petroleum—revise the jet fuel prices on 1st and 16th of every month, depending upon the average international price.

In a separate development, the government also ruled out diesel price hike in the immediate future even as it continued to incur a loss of Rs 12 per litre despite the recent steep price hike of Rs 5 per litre on September 13.

"There is no proposal to increase diesel prices with us at present...," Petroleum Minister S Jaipal Reddy said.

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