Air Turbine fuel decontrolled - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Air Turbine fuel decontrolled

Mar 16, 2000

The government has decided to decontrol aviation turbine fuel (ATF). This would put the local price on par with the global one. ATF is one of the five products which are controlled, the others being diesel, kerosene, LPG, and petrol. The decontrol would help refining companies in that the permission for raising the local price of ATF was considerably delayed despite the international oil prices tripling from levels of $ 9 per barrel to $ 30 per barrel.

However, the fact remains that earlier it was ATF that was used to cross subsidise the other fuels such as LPG, diesel and kerosene. These are the products whose prices are kept down artificially and this was done through higher petrol and ATF prices. The decontrol of kerosene, LPG and diesel prices, will require political will from the government.

Be that as it may, the fact remains that oil companies no longer have to seek government permission to raise prices in the future. That would be some relief for Indian Oil, Bharat Petroleum and Hindustan Petroleum whose bottomlines in the current year have been hit by higher crude prices without any increase in the price of the controlled products except for a 40% hike in the prices of diesel in October 1999.

Equitymaster requests your view! Post a comment on "Air Turbine fuel decontrolled". Click here!


More Views on News

5 Green Energy Stocks to Watch as India Readies for a Revolution (Views On News)

Oct 13, 2021

The excitement around green energy stocks has opened up a huge contrarian opportunity in the traditional energy space.

Top Performing PSU Stocks over the Past One Year (Views On News)

Oct 1, 2021

After a decade of underperformance, PSU stocks have woken up. Here are the best performing PSUs of past twelve months.

Linde India Shares Hits New High. Up 230%+ in One Year (Views On News)

Aug 26, 2021

Linde India shares have surged sharply in the past few trading sessions. What's causing the rally?

ONGC Logs Massive Jump in Net Profit as Crude Oil Prices Double (Views On News)

Aug 16, 2021

Rising crude oil prices compensate ONGC's fall in production.

HPCL Shares Under Pressure After Profit Declines in June Quarter (Views On News)

Aug 5, 2021

Rising crude oil prices and forex woes weigh on HPCL's quarterly numbers.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

How to Hit Rs 100 Crore Wealth in Your Lifetime (Equitymaster Wealth)

Nov 15, 2021

This is how you can achieve the ambitious goal of a net worth of Rs 100 crore.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Nov 26, 2021 (Close)