India: Jet fuel up by 8.2%, state raises import duty on steel to 5%Staff writer ▼ | March 2, 2015
Jet fuel price was on Sunday hiked by an 8.2 percent while the rates of non-subsidised LPG were increased by Rs5 per cylinder on firming international oil rates.
Oil companies New problems for troubled airliners
The rate hike follows seven consecutive monthly cuts since August, the last being by 11.27 percent (Rs 5,909.9 per kl) from February 1. Prior to Sunday's increase, ATF price had been cut by Rs23,648.73 or 33 percent in seven reductions since August 2014. Even after this hike, jet fuel rates are lowest since February 2011.
Jet fuel constitutes over 40 percent of an airline's operating costs and the price increase will raise the financial burden of cash-strapped carriers.
Simultaneously, the oil companies also hiked the price of non-subsidised or market-priced domestic cooking gas (LPG) by Rs5 to Rs610 per 14.2-kg cylinder in Delhi.
The increase comes on back of seven straight reductions in rates of non-subsidised or market-priced LPG since August. The customers buy non-subsidised after exhausting their quota of 12 cylinders at subsidised rates.
Finance Minister Arun Jaitley said India will raise the import duty on steel by 5 percentage points from April 1 to stem a flow of cheap supplies from China and Russia.
The step will help local companies that were fast losing their market share in the world`s fourth largest producer of the alloy. The government would raise the tariff to 15 percent from 10 percent, Jaitley said in his budget for the next fiscal year.
The country will also raise the import tax on metallurgical coal to 5 percent from 2.5 percent. ■