Oil cos told to consider new jet fuel discounts

Mumbai /Delhi: Looking to ease soaring fuel costs and related passenger surcharges, the ministry of petroleum and natural gas has asked government-owned oil marketing companies to consider offering new discounts on jet fuel prices to India’s domestic airlines, which have collectively reported a loss of $500 million (Rs2,172 crore) in 2006-07.
Three state-owned oil marketing companies—Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd—are the main suppliers of jet fuel, popularly known as aviation turbine fuel, or ATF.
ATF rates for domestic operations in India are priced 70-90% higher than international benchmarks and often used to help cushion the subsidies that the government mandates for the more commonly used petrol and diesel. Meanwhile, the estimated annual fuel bill for the domestic airline industry is around $1.9 billion based on rates prevailing in November.
19/11/07 P.R. Sanjai and Tarun Shukla/Livemint

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Categories: General Aviation Nov 2007