Govt may reduce base prices for ATF: Patel

The government may reduce the base prices for aviation turbine fuel (ATF) or what is internationally called jet fuel, which could provide a relief of Rs 500 crore to the domestic airline industry in the next fiscal.
Civil Aviation Minister Praful Patel disclosed this in an exclusive chat with Hindustan Times reporters in Mumbai. Airlines say that oil companies are making a marketing margin of 14-15 per cent on ATF compared lower margins on other petroleum products.
This increases the base prices for ATF, which the government may reduce. Oil companies, however, were unaware of such a move.
A cut in marketing margins can reduce base prices of ATF. "If they cut their margin by 10 per cent, that could reduce ATF prices by Rs 3-4/litre, which could bring down monthly fuel bill by Rs 3-4 crore," said SpiceJet director Ajay Singh.
Patel also indicated that the government may reduce the customs duty on ATF in the coming budget, and the matter has been taken up with finance minister P Chidambaram. Differential sales tax in states is another area of concern.
04/02/07 Ranju Sarkar/Hindustan times

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Categories: General Aviation feb 2007