States must reduce VAT on turbine fuel to boost air traffic: VK Singh
“The Centre has held talks with the State Governments and has requested them to reduce their rates which are sometimes as high as 30 per cent”
Aviation turbine fuel (ATF) price has been cut by over 5 per cent, reversing a two-month rising trend, while rates of subsidised LPG were hiked by Rs.5.57 per cylinder.
Also, the rate of non-subsidised cooking gas (LPG) has been cut by Rs.14.50 per cylinder in line with international trends.
Price of jet fuel or ATF was cut by Rs.2,811.38 per kilolitre, or 5.1 per cent, to Rs.51,428 per kl with effect from April 1, oil companies said.
The reduction comes on the back of a marginal hike of Rs.214 kl effected on March 1 and a 3 per cent increase on February 1.
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Simultaneously, price of non-subsidised LPG, bought by those who have either given up their subsidies or exhausted the quota of 12 bottles of 14.2-kg in a year at below market price, was cut to Rs.723 per 14.2-kg cylinder from Rs.737.50.
The reduction comes on back of a steep Rs.86 per cylinder hike in rates from March 1. That was the steepest hike in recent times and came on the back of Rs.66.5 per cylinder increase effected from February 1.
Rates had been on the upswing since October, 2016. A non-subsidised LPG cylinder was priced at Rs.466.50 in Delhi in September and had risen by Rs.271 per bottle or 58 per cent in six instalments.
Oil firms, however, raised price of subsidised cooking gas by Rs.5.57 to Rs.440.5 per 14.2-kg cylinder. This hike came as the state-owned oil firms on previous two occasions — February 1 and March 1 — did not effect any significant raise in prices in view of assembly elections in states like Uttar Pradesh.
Prior to that, they had raised rates by nearly Rs.2 per cylinder for eight months in line with government decision to cut subsidises through calibrated increases every month.
Oil firms revise rates of ATF and cooking gas on 1st of every month based on oil price and foreign exchange rate in the preceding month.
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