Tuesday, December 16, 2008

ATF prices calm down but not the air fares... Govt indicates the airlines to lower the fares.

With Aviation Turbine Fuel prices falling yet again on Monday, the seventh time in the past three months and is now hovering at December 2005 rates, the government has strongly indicated to airlines that fares must be lowered.

In the latest cut, oil companies reduced prices by a whopping 11%. In Delhi, for instance, ATF costs Rs 32,691 a kilolitre i.e. cheaper by 54% from the August high and is at and at 36 month low. Airlines have so far have reacted only by lowering fuel surcharge by Rs 400 along with some dropping congestion surcharge of Rs 150.

ATF price per kilo litre (in Delhi)

August: Rs 71,028

Sept: Rs 59,650

Oct: Rs 56,448

Nov 1: Rs 47,018

Nov 16: Rs 39,380

Dec 1: Rs 36,900

Dec 16: Rs 32,691


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