Indian Oil cuts ATF prices by up to 4.4 per cent

05 June 2008

Mumbai: State-run oil marketing firm Indian Oil Corporation has announced a 4.3-4.4 per cent cut in the price of aviation turbine fuel (ATF) after the government halved the customs duty on the fuel from 10 per cent to five per cent.

Effective today, ATF in Delhi will cost Rs66,226.66 per kilo litre, down Rs 3,000.42 per kl, while in Mumbai it will cost 4.36 per cent less at Rs68,626.87 per kl, sources at the Indian Oil Corporation said.

The government yesterday announced a reduction in customs duty on petroleum products to five per cent from 10 per cent as part of efforts to ease losses at state oil companies.

An across-the-board five per cent cut in customs duties also brought down import duty rates on crude oil to zero, on petrol and diesel to 2.5 per cent and on other products like naphtha for non-fertiliser use to five per cent.

Besides, excise duty on petrol has been cut by Re1 a litre to Rs13.45 and on diesel to Rs3.60.

The government will also increase the crude oil subsidy to oil refiners by upstream companies like ONGC and OIL to Rs45,000 crore this fiscal from Rs25,708 crore last year.