ATF price cut 23%, costs one-third of petrol, diesel whose rates continue to be on hold

ATF price cut 23%, costs one-third of petrol, diesel whose rates continue to be on hold

Cooperative bank CKP, which bit the dust on May 2, owns almost 97% of gross non-performing assets (GNPA), including a large portion of loans to developers of small and medium-sized properties.

As of April 30, the bank had a loan portfolio of Rs 158 crore and deposits of Rs 486 crore. The bank had a negative net worth of Rs 239 million, according to the latest available figures.

As in the case of the Punjab and the Maharashtra Cooperative Bank (PMC), the bankruptcy of this bank was also a big shock for depositors. “The bank owns around 97% of the postal code. We did our best. What happened is regrettable, "Moreshwar Dhaimodkar, managing director of the CKP bank, told Moneycontrol.

The deterioration in CKP's finances eventually forced the Reserve Bank of India (RBI) to revoke the lender's license after several warnings and due to the bank's inability to offer a stimulus package. In fact, the RBI had prevented CKP Bank from taking deposits and making new loans in 2014 due to financial irregularities

Gasoline and diesel prices were frozen shortly after the government raised excise duties on two fuels by Rs.3 per liter to offset gains from lower international prices.

Oil companies, instead of transferring excise duties to consumers, decided to adapt them to the required reduction due to the fall in international oil prices. They used the same tool and did not exceed the Re 1 per liter increase needed to switch to BS-VI quality ultra clean fuel from April 1.

Market analysts, however, said the same volatility was also seen in ATF prices, but that did not stop oil companies from passing the decline on to airlines.

More importantly, no airline has operated since mid-March due to restrictions to control the spread of the coronavirus, but oil companies have continued to lower kerosene prices.

In fact, oil companies used to revise ATF prices on the 1st of each month, but adopted bi-monthly revisions on March 21 to pass the benefit of falling international oil prices on to airlines.

Even the cost of non-PDS kerosene or the market price has seen a rate reduction similar to that of the ATF. It was priced at Rs 65,815.47 per kl in January.

Although the government has deregulated the prices of gasoline and diesel, public sector oil companies Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) have in the past suspended changes in fees for reasons that appear to be non-commercial.

There was a 19-day price freeze on gasoline and diesel ahead of the Karnataka polls in May 2018 despite a rise in international fuel prices of nearly $ 5 a barrel. However, at the end of the elections, they quickly passed on the desired increase to customers: for 16 consecutive days after May 14, 2018, the price of gasoline increased by Rs 3.8 per liter and that of diesel by Rs 3.38.

Similarly, they had stopped reviewing fuel prices for almost 14 days before the Gujarat Assembly elections in December 2017.

These companies also imposed a freeze on gasoline and diesel prices between January 16, 2017 and April 1, 2017, when elections were held in five states: Punjab, Goa, Uttarakhand, Uttar Pradesh, and Manipur. .

In the 2019 general election, they moderated the review by failing to pass on the desired rate hikes to consumers, according to industry sources. And the rates started to increase a day after the end of the final voting phase for the Lok Sabha elections.