Moneycontrol
Last Updated : Oct 11, 2018 11:01 AM IST | Source: Moneycontrol.com

Aviation stocks rises 7% on excise cut on ATF, lower crude prices

The government has announced to cut excise duty on aviation turbine fuel (ATF) from 14 to 11 percent effective October 11.

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Aviation stocks SpiceJet, Interglobe Aviation and and Jet Airways are trading higher by 4-7 percent on Thursday after government cut the excise on ATF prices.

On Wednesday, crude oil prices fell by 2 percent after Wall Street suffered its worst fall in the last eight months.

The government has announced to cut excise duty on aviation turbine fuel (ATF) from 14 to 11 percent effective October 11.

The measure comes as higher ATF prices and a weaker rupee are troubling airline finances. Recently, the government cut excise duty on petrol and diesel.

On October 4 it slashed excise on petrol and diesel by Rs 1.5 per litre and told oil manufacturing companies to absorb Re 1 per litre of costs to provide some relief to consumers as fuel prices were at record highs.

In 2014, excise duty on ATF was raised to 14 percent from 8 percent. This cut to 11 percent will provide substantial relief to airlines.

At 10:33 hrs Interglobe Aviation was quoting at Rs 799.55, up Rs 53.80, or 7.21 percent.

At 10:33 hrs SpiceJet was quoting at Rs 71.10, up Rs 3.00, or 4.41 percent and Jet Airways was quoting at Rs 195.95, up Rs 6.80, or 3.60 percent on the BSE.
First Published on Oct 11, 2018 10:35 am
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