Jet fuel price slashed by 11.7%, non-subsidised LPG by 25.5%
2 Sept 2015 7:59 AM IST
ATF or jet fuel price was on Tuesday slashed by a steep 11.7 per cent while rates of non-subsidised cooking gas LPG were reduced by Rs 25.5 per cylinder in line with <g data-gr-id="36">dip</g> in international prices. Aviation Turbine Fuel (ATF) price in Delhi was cut by Rs 5,469.12 per kilolitre (<g data-gr-id="30">kl</g>), or 11.7 per cent, to Rs 40,938.24 per <g data-gr-id="31">kl</g>, oil companies announced.
This is one of the steepest reductions, the biggest being a cut of Rs 7,520 per <g data-gr-id="26">kl</g>, or 12.5 <g data-gr-id="27">per cent</g>, on January 1. Prior to Tuesday’s reduction, jet fuel rate was cut by 9.4 per cent to Rs 46,407.36 on August 1 and by Rs 2,086.56 per <g data-gr-id="28">kl</g> to Rs 51,267.36 on July 1. ATF, just as fuel in aeroplanes, on <g data-gr-id="39">Tuesday</g> costs 33 <g data-gr-id="29">per cent</g> less than petrol that drives two-wheelers and cars. After a Rs 2 per litre cut effected from Tuesday, petrol in Delhi costs Rs 61.20 per litre as compared to jet fuel rate of Rs 40.93 a litre.
Higher rates of petrol is primarily due to central and local sales taxes - Rs 17.46 - on account of excise duty and Rs 12.25 because of sales tax or VAT. Rates vary at different airports because of <g data-gr-id="38">differential</g> in local sales tax or value-added tax (VAT). Jet fuel constitutes over 40 <g data-gr-id="33">per cent</g> of an airline’s operating costs and the price cut will reduce the financial burden on cash-strapped carriers.
No immediate comment was available from airlines on the impact of price reduction on passenger fares. Simultaneously, the oil firms have also cut prices of <g data-gr-id="25">non</g>- subsidised LPG, which consumers buy after exhausting their quota of subsidised cooking fuel, by Rs 25.50 per 14.2-kg bottle. Non-subsidised cooking gas (LPG) price in Delhi has been cut to Rs 559.50 per cylinder as compared to Rs 585 previously. This is the third reduction in rates in as many months. Non-subsidised LPG rates were last cut by Rs 23.50 on August 1. Prior to that, rates were cut by Rs 18 per cylinder to Rs 608.50 on July 1.
Non-subsidised or market-priced LPG is one that consumers buy after exhausting their quota of 12 bottles of 14.2-kg each at subsidised rates in a year. Subsidised LPG costs Rs 417.82 per 14.2-kg cylinder in Delhi.
Petronet LNG to raise Rs1,000 crore through bonds issue this fiscal
Petronet LNG Ltd, India’s biggest liquefied natural gas importer, will raise Rs 1,000 crore through bonds issue this fiscal mostly to pay off its existing debt. <g data-gr-id="71">Company</g> is seeking shareholders’ approval “to raise Rs 1,000 crore through issuance of secured/unsecured <g data-gr-id="73">non convertible</g> debentures through <g data-gr-id="72">private</g> placement in one or more tranches during the financial year ending March 31, 2016.” “The funds will be used to refinance the existing debt and/or to meet the <g data-gr-id="67">capex</g> requirement of the company,” <g data-gr-id="68">Petronet</g> said in a notice to shareholders ahead of its annual general meeting (AGM) on September 24. The money raised through the bonds issue will be repayable in a maximum of 10 years. Petronet had total borrowings of Rs 2,373.81 crore as on March 31, 2015.
In 2014-15, it had refinanced a part of its rupee term loans by substituting it with low-cost rupee bonds in the Indian markets for Rs 1,000 crore. Also, the company has proposed to raise the cap on foreign portfolio investors or FII shareholding in the company from 24 per cent to 30 per cent of paid up capital. Current, equity share capital of the company is Rs 750 crore out of which 50 per cent is held by its four promoters — state-owned GAIL, Indian Oil, Bharat Petroleum and ONGC.
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