ATF cheaper than petrol in India !

NDTV: Only in India is ATF cheaper than petrol.
ATF is sold at Rs 40 per litre to the airlines, whereas petrol which is consumed by the common man, costs Rs 57 per litre
I dont know how much more expensive is ATF as compared to petrol or diesel, but ATF or Aviation turbine fuel is supposed to be more refined version of crude oil than petrol. So why is the Indian government not considering a petrol price cut? Currently the reason cited is that the petroleum refining and marketting companies have suffered such big losses during the recent bull run of crude oil, that they need a chance, some more time to make profit and come back into business.

Reducing Petrol price is one of the best 'populist moves' that this government can make. It is being targeted by opposition for price hikes and high inflation. So what could be a best move than to just cut petrol prices just some time before the election campaigning picks up speed? The Congress will look for timing in this case.

But do you remember ? The governement had clearly announced, that it will consider reducing petrol prices when crude drops below $67? I think the govt simply did not expect this scenario so face to early. It had not really planned for it. Remember this announcement was during a time when crude oil had just dropped from its peak $147 to just below $100. $67 seemd unthinkable at that time.

Nov 22, 2008

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