Oilcos to cut aviation fuel prices by 6%

Mumbai: In A move that could improve airline companies’ bottomlines, oil firms has decided to cut aviation turbine fuel (ATF) prices by about 6% from February 1. The base price of the fuel is likely to be revised to Rs 2,091/KL, based on the average Arab Gulf price through January.
However, initial reports suggest that the airlines are unlikely to pass on the benefit to passengers who are currently paying about Rs 650 as fuel surcharge and Rs 150 as congestion charge.
Domestic carriers say that the prices are still too high and that they have not yet recovered losses made due to high fuel costs.
Oil traders say, aviation fuel prices in the month have softened, but not to the extent of crude oil which fell to below $60/bbl. The price is set by three public sector oil companies — IndianOil, Bharat Petroleum and Hindustan Petroleum —, which control the aviation fuel supplies to airports across the country. It is benchmarked to the Arab Gulf ATF prices which fell to $67/bbl from about $75/bbl in the beginning of the month.
30/01/07 Cuckoo Paul/Economic times

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