Chennai: The price of Aviation Turbine Fuel (ATF) was slashed by a record 14.7 per cent on the back of decline in international rates. The price cut saw a litre of jet fuel cost less than petrol when pitted together.
The price of ATF was slashed by Rs 9,990 per kilolitre, or 14.7 per cent, to Rs 58,060.97 per kl, according to price notification issued by State-owned oil firms.
This is the second straight monthly reduction in rates. In December last year, prices were slashed by Rs 8,327.83 per kl, or 10.9 per cent.
The two consecutive price reduction has brought ATF rates to their lowest levels in a year and will provide much-needed relief to cash-strapped airlines.
Rates are now cheaper than both petrol and diesel in most parts of the country. A litre of petrol costs Rs 71.22 in Chennai and a litre of diesel comes for Rs 66.14.
ATF costs just a shade higher than the price charged for kerosene sold through non-PDS (public distribution system) outlets in Delhi. Non-PDS in Delhi is priced at Rs 56.59 per litre.
State-owned fuel retailers revise rates of ATF on the 1st of every month based on average international oil rates and rupee-dollar exchange rate in the preceding month.
DUTY CUT
The government has cut import duties on crude and refined palm oil to comply with preferential trade pacts with Southeast Asian nations.
The import duty on crude palm oil, originating from Malaysia, Indonesia and other members of Association of South East Asian Nations (ASEAN) has been cut to 40 per cent from 44 per cent, the Central Board of Indirect Taxes and Customs (CBIC) said in a notification.
The duty on import of refined palm oil has been lowered to 45 per cent from 54 per cent, if it is imported from Malaysia, and to 50 per cent, if it is imported from members of the ASEAN, which includes Indonesia.
The duties have been cut, CBIC said, “to provide deeper tariff concessions in respect of specified goods when imported from ASEAN”.