ATF prices fall 7% in December: Aiyar

The Aviation turbine fuel (jet fuel) prices have fallen 7.8% in December in line with the decline in international oil prices.

ATF prices in Delhi declined from Rs 31,985.23 per kilolitre in November to Rs 29,480.24 per kilolitre this month, Petroleum Minister Mani Shankar said in a written reply to a question in Rajya Sabha today.

ATF prices are completely deregulated and move in tandem with international price trends.

Prices in November were the highest in 2004, Mani Shankar said. ATF prices started firming up in May and rose steadily to the peak in November.

To a question raised on Gail, Mani Shankar said Gail (India) has conceptualised laying of three pipeline networks from Kochi to Kayamkulam, Mangalore and Bangalore for the supply of regassified LNG from the proposed Kochi LNG terminal.

Petronet LNG is building a 2.5 million tonnes per annum capacity import facility at Kochi by 2008-09.

Aiyar said the average refining cost of PSU oil refineries during 2001-02, 2002-03 and 2003-04 was Rs 515 per tonne, Rs 525 per tonne and Rs 511 per tonne respectively.

"The average gross refining margin of PSU refineries during 2001-02, 2002-03 and 2003-04 was Rs 698 per tonne, Rs 1405 per tonne and Rs 1592 per tonne respectively," Mani Shankar said.

Aiyar said the refineries are at present paying 10% customs duty on crude. "To compensate them the applicable customs duty on products is included in refinery transfer price. The customs duty element currently included in RTP is 15% on petrol and diesel and 5% on kerosene and LPG."

"Owing to non-revision in domestic consumer prices in line with international prices of PDS kerosene, domestic LPG, diesel and petrol during the first half of the current financial year (April-September, 2004), oil marketing companies estimate their under-recoveries at around Rs 9800 crore," Mani Shankar said.