OMCs slash ATF prices by nearly Rs 5 per litre amid softer crude oil

New Delhi, July 1 (IANS) State-owned oil marketing companies (OMCs) have reduced aviation turbine fuel (ATF) prices by nearly Rs 5 per litre, effective from Wednesday, following a decline in international crude oil prices after easing geopolitical tensions in West Asia.

According to the latest price notification, the price of jet fuel in Delhi has been cut to about Rs 110 per litre, coming into effect from July 1.

The latest price cut is expected to lower operating costs for domestic carriers, although the actual benefit will depend on individual airlines’ fuel procurement and hedging strategies.

The reduction follows a softening in global crude oil prices in recent weeks as geopolitical tensions in West Asia eased and concerns over supply disruptions subsided, providing relief to airlines for which fuel is the single-largest operating expense.

Earlier in June, the government had fixed the basic price of aviation turbine fuel (ATF) for domestic airlines at Rs 86.32 per litre for up to three years under the new price stabilisation scheme to keep airlines financially viable and passenger tickets affordable.

Under the voluntary scheme, airlines participating in the scheme will pay the fixed free-on-board (FOB) benchmark price as well as airport charges, oil company margins, and applicable taxes, taking the final selling price to about Rs 115 per litre in Delhi, Rs 114.50 in Mumbai, and Rs 139 in Chennai, according to government officials.

Along with this, the Centre has revised the windfall tax on exports of petroleum products.

Under the revised rates, the Special Additional Excise Duty (SAED) on petrol exports has been increased to Rs 4 per litre, while the export duty on diesel has been reduced to Rs 8.5 per litre and that on ATF to Rs 7.5 per litre.

However, there is no change in the existing excise duty on petrol and diesel sold in the domestic market.

–IANS

ag/