,[New Delhi] Delhi Flies Up Prices Of Aviation Turbine Fuel (ATF) By 8.7%
Aviation Turbine Fuel (ATF), or jet fuel, price was today hiked by 8.7 per cent
ATF price in Delhi was raised by Rs 3,371.55 per kilolitre (kl), or 8.69 per cent, to Rs 42,157.01 per kl, oil companies said today.
The hike comes on the back of a marginal 1.3 per cent or Rs 515.85 cut in rates on March 10.
Prior to that, rates were hiked by steep 12 per cent, or Rs 4,174.49, on March 1,
almost neutralising a Rs 4,765.5 cut on February 1.
The March 1 hike broke the cycle of three consecutive monthly price reductions.
Rates vary at different airports because of differential local sales tax or value-added tax (VAT).Jet fuel constitutes over 40 per cent of an airline’s operating cost and the price increase will add to the financial burden on cash-strapped carriers.
The ATF price cut on March 10 was on account of change in taxation.
Tag: ATF Prices Hike
Delhi Flies Up Prices Of Aviation Turbine Fuel (ATF) By 8.7%
Govt.To Hike 6% Excise Duty On ATF To Make Air Travel -Expensive
[New Delhi]Govt. Proposing a Hike 6% Excise Duty On ATF To Make Air Travel -Expensive
The excise duty on ATF is to be hiked to 14 per cent from 8 per cent, according to a proposal in Union Budget 2016-17.
The increase would be virtually applicable to airlines operating from all airports since the proposal for SCAs and the regional connectivity scheme are yet to be implemented.
The Civil Aviation Ministry has mooted the idea of SCAs and regional connectivity in the draft aviation policy which has not been finalised yet.
“Excise duty on ATF, other than for supply to Scheduled Commuter Airlines (SCA) from the Regional Connectivity Scheme Airports, (is) being increased.
“ATF for supply to aircrafts under the Regional Connectivity Scheme will continue to attract 8 per cent excise duty,” Finance Minister Arun Jaitley said while presenting the Budget.
Interestingly, the hike in excise duty also comes at a time when airlines have been seeking lower levy on jet fuel, which accounts for more than 40 pr cent of their total operating expenses.
Central Aviation Minister Slashed Kejriwal’s Delhi Govt For Taxing ATF
[New Delhi]Central Aviation Minister Slashed Kejriwal’s Delhi Govt For Taxing ATF Delhi Govt Justifies By Saying This Hike Is a Part Of Their Budget
Union Civil Aviation Minister Ashok Gajapathi Raju said such a move would be like “taxing an economic activity to death”.
ATF (Aviation Turbine Fuel) expenses make up a substantial part of the overall operational costs incurred by airlines.
To bring down the costs, the Centre had earlier written to state governments asking them to reduce the value-added tax on ATF.
Some state governments responded positively, while some did not, the Delhi government decided to enhance taxes on ATF, the
“Taxes are a reality, but taxing an economic activity to death, probably India shows the way in that
Minister Added ,We need to come out of that scenario and go forward”,
Delhi government Justifying hiking tax on jet fuel, said the decision was part of this year’s Budget.
Even after hiking the VAT on ATF to 25 per cent from 20 per cent, the rate is still among the lowest,
On whether the Centre was looking to evolve a consensus among states with respect to taxation on ATF, the Minister replied in the negative.
“I am not trying to develop a consensus. You see a consensus would not be possible. Luckily for us, a large number of chief ministers agreed to my suggestion. There is one chief minister who has gone against it and said what the hell… I will increase. It is okay, it doesn’t matter”, Raju said.
He was speaking at an air cargo summit organised by industry body PHD Chamber
About making taxation side of civil aviation sector a little more flexible, Raju said efforts would be made in this regard even as he added that usually the taxmen in the Finance Ministry are not pro-active and liberal.
“If you look at the political manifestos of all parties, regional and national, aviation will probably find a sentence in the BJP manifesto that too on regional connectivity.
“Somehow, aviation seems to have slipped from the political map. We need to bring it back”, Raju noted.
To a query on whether his Ministry has reviewed aviation security in the wake of a recent bombing of a Russian aircraft, Raju said, “Indian skies as far as security is concerned are fairly safe”.
On whether the Ministry has given preliminary approval for setting up an airport in Bhiwadi, Rajasthan, Raju did not offer any specific comment and only said, “we are not against (new) airports”
ATF(Jet Fuel) Price up 5.5 %; LPG Cut by Rs 42
[New Delhi]Aviation Turbine Fuel[ATF] Price up 5.5 %; LPG Cut by Rs 42
ATF or jet fuel price was today hiked by 5.5 per cent on global trends while rates of non-subsidised cooking gas LPG were cut by Rs 42 per cylinder.
Also, rates of non-subsidised kerosene were increased by Rs 54 paisa to Rs 43.18 per litre.
(ATF) price in Delhi was raised by Rs 2245.92 per kilolitre (kl), or 5.48 per cent, to Rs 43,184.16 per kl, oil companies announced today.
The hike comes after a steep 11.7 per cent or Rs 5,469.12 per kl cut in rates to Rs 40,938.24 per kl effected from September 1, the third in straight monthly reduction. Prior to that jet fuel rate was cut by 9.4 per cent to Rs 46,407.36 on August 1 and by Rs 2,086.56 per kl to Rs 51,267.36 on July 1.
Rates vary at different airports because of differential local sales tax or value-added tax (VAT).
Jet fuel constitutes over 40 per cent of an airline’s operating costs and the price increase will raise the financial burden on cash-strapped carriers.
No immediate comment was available from airlines on the impact of price reduction on passenger fares.
Simultaneously, the oil firms have also cut prices of non-subsidised LPG, which consumers buy after exhausting their quota of subsidised cooking fuel, by Rs 42 per 14.2-kg bottle.
Non-subsidised cooking gas (LPG) now costs Rs 517.50 in Delhi.
This is the fourth reduction in rates in as many months.
Non-subsidised LPG price was last cut by Rs 25.50 on September 1. Prior to that rates were cut by Rs 23.50 on August 1 and by Rs 18 per cylinder to Rs 608.50 on July 1.
Non-subsidised or market-priced LPG is one that consumers buy after exhausting their quota of 12 bottles of 14.2-kg each at subsidised rates in a year.
Subsidised LPG costs Rs 417.82 per 14.2-kg cylinder in Delhi.
Also, the price of non-subsidised kerosene, available outside the ration shop, has been hiked to Rs 43,181.56 per kl or Rs 43.18 per litre, from Rs 42,643.09 per kl.
Subsidised kerosene currently costs Rs 14.96 a litre in Delhi.
The three fuel retailers – Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum – revise jet fuel prices, non- subsidised LPG and non-subsidised kerosene rates on the first day of every month, based on the average international price in the preceding month.
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