Mumbai: While global crude oil prices have fallen 21% since June, the
price of domestic aviation turbine fuel dropped 0.8% between July and
September. ATF prices were cut an additional 3%, effective October,
bringing relief to airlines
Domestic airlines expect the fall in prices of aviation fuel to boost their earnings from the quarter ending December.
While global crude oil prices have fallen 21 per cent since June, the price of domestic aviation turbine fuel (ATF) dropped only 0.8 per cent between July and September. ATF prices were cut an additional three per cent, effective October, bringing relief to airlines.
“We should see the good impact of the ATF price in the third quarter. Revision in ATF price, as a result of the lower crude price, is implemented with a lag,” said a senior executive of a private airline. “Recently, the government cut value-added tax on jet fuel in Seemandhra — from 16 per cent to one per cent.”
Read news in full 08/10/14 Business Standard
Domestic airlines expect the fall in prices of aviation fuel to boost their earnings from the quarter ending December.
While global crude oil prices have fallen 21 per cent since June, the price of domestic aviation turbine fuel (ATF) dropped only 0.8 per cent between July and September. ATF prices were cut an additional three per cent, effective October, bringing relief to airlines.
“We should see the good impact of the ATF price in the third quarter. Revision in ATF price, as a result of the lower crude price, is implemented with a lag,” said a senior executive of a private airline. “Recently, the government cut value-added tax on jet fuel in Seemandhra — from 16 per cent to one per cent.”
Read news in full 08/10/14 Business Standard
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