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Aviation Turbine Fuel price decontrolled; to cost Rs 3 less

The government on Friday announced deregulation of Aviation Turbine Fuel (ATF) prices from Sunday after which ATF price would come down by about Rs 3 per litre.

Announcing this, Petroleum Minister Ram Naik told reporters that consequent to decontrol of ATF, which at present was cross-subsidising LPG (cooking gas) and kerosene, consumer prices of ATF would be market-determined and would be fixed by oil companies.

From April one, ATF prices in Delhi would come down from Rs 20.78 per litre to Rs 17.55 per litre, in Bombay from Rs 22 per litre to Rs 17.89 per litre, in Calcutta from Rs 22.81 per litre to Rs 19.63 per litre and in Madras from Rs 22.19 per litre to Rs 17.74 per litre.

Naik said the government would stick to the phased programme for dismantling of administered pricing mechanism (APM) commencing April one, 1998, through March 31, 2002.

"APM will be phased out by March 31, 2002, by gradually doing away with subsidies in the consumer prices of petroleum products and rationalising customs and excise duty structure," he said.

From 2002, subsidy at the rate of only 33.3 per cent of price of kerosene and 15 per cent of LPG for domestic use would remain, he said adding the price of diesel would be linked to import parity price.

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