Shares of three aviation companies surged by 2.14% to 8% on BSE, on reports that the state-owned oil companies on Thursday, (May 31, 2012) cut jet fuel price by 2%.
At 10.55 am, Kingfisher Airlines (up 8%), SpiceJet (up 2.66%) and Jet Airways (India) (up 2.14%)
The price of aviation turbine fuel ( ATF), or jet fuel, in Delhi was reduced by Rs1,376.81 per kilolitre (kl), or 2% to Rs65,670.14 per kl with effect from May 31, 2012 midnight, as per reports.
The reduction comes on back of Rs753.8 per kl cut in rates in three previous fortnights. But these reductions are dwarfed by the steep increases effected in March 2012 and early April 2012. ATF rates were increased by 3.2% on March 01, 2012, Rs1,298.88 per kl on March 16, 2012 and by another 2.8% on April 01, 2012.
ATF typically makes up for 50% of an airlines' operating cost. ATF prices vary from airport to airport, depending on the local sales tax or VAT. State-run oil marketing companies -- Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight.
....more info
At 10.55 am, Kingfisher Airlines (up 8%), SpiceJet (up 2.66%) and Jet Airways (India) (up 2.14%)
The price of aviation turbine fuel ( ATF), or jet fuel, in Delhi was reduced by Rs1,376.81 per kilolitre (kl), or 2% to Rs65,670.14 per kl with effect from May 31, 2012 midnight, as per reports.
The reduction comes on back of Rs753.8 per kl cut in rates in three previous fortnights. But these reductions are dwarfed by the steep increases effected in March 2012 and early April 2012. ATF rates were increased by 3.2% on March 01, 2012, Rs1,298.88 per kl on March 16, 2012 and by another 2.8% on April 01, 2012.
ATF typically makes up for 50% of an airlines' operating cost. ATF prices vary from airport to airport, depending on the local sales tax or VAT. State-run oil marketing companies -- Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight.
....more info