ATF for domestic flights is among the most expensive in India due to two reasons — high base price by oil marketing companies who are not able to raise politically sensitive petrol, diesel and cooking gas prices and thereby jet fuel sees a disproportionate increase. And then high central and state taxes on the base price leads to very expensive ATF. With airlines forced to hike airfares, the recovery in air traffic has stumbled due to the higher cost of flying.
Struggling to survive Indian carriers have long been requesting excise duty reduction on jet fuel and also that jet fuel be brought under GST so that they get the benefit of input tax credit. ATF prices have increased by more than 120% since June 2021. What has added to airlines’ burden is the weakening rupee as a majority of there costs like lease rentals and maintenance contracts are dollar-denominated.
On Friday, Union petroleum and aviation ministers had met to discuss some relief to Indian carriers on fuel front. “I thank my senior colleague, petroleum minister Hardeep Singh Puri, for meeting us along with the oil marketing companies and the advisory group of airlines.Confident that we will work together to resolve the air turbine fuel issues facing the aviation sector,” aviation minister J M Scindia had tweeted on Friday. Incidentally, Puri was aviation minister before Scindia and is aware of the ATF crisis facing Indian airlines.
ATF prices are revised on the 1st and 16th of every month based on rates of benchmark international oil rates in the previous fortnight. Except for the two marginal cuts, ATF prices have been on the rise throughout 2022. In all, rates have been increased 11 times since the start of the year. This has led to rates almost doubling in six months.
!(function(f, b, e, v, n, t, s) {
window.TimesApps = window.TimesApps || {};
const { TimesApps } = window;
TimesApps.loadFBEvents = function() {
(function(f, b, e, v, n, t, s) {
if (f.fbq) return;
n = f.fbq = function() {
n.callMethod ? n.callMethod(…arguments) : n.queue.push(arguments);
};
if (!f._fbq) f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
})(f, b, e, v, n, t, s);
fbq(‘init’, ‘593671331875494’);
fbq(‘track’, ‘PageView’);
};
})(
window,
document,
‘script’,
‘https://connect.facebook.net/en_US/fbevents.js’,
);if(typeof window !== ‘undefined’) {
window.TimesApps = window.TimesApps || {};
const { TimesApps } = window;
TimesApps.loadScriptsOnceAdsReady = () => {
var scripts = [‘https://static.clmbtech.com/ad/commons/js/2658/toi/colombia_v2.js’,
‘https://www.googletagmanager.com/gtag/js?id=AW-877820074’,
‘https://imasdk.googleapis.com/js/sdkloader/ima3.js’,
‘https://tvid.in/sdk/loader.js’,
‘https://timesofindia.indiatimes.com/video_comscore_api/version-3.cms’,
‘https://timesofindia.indiatimes.com/grxpushnotification_js/minify-1,version-1.cms’,
‘https://connect.facebook.net/en_US/sdk.js#version=v10.0&xfbml=true’,
‘https://timesofindia.indiatimes.com/locateservice_js/minify-1,version-14.cms’
];
scripts.forEach(function(url) {
let script = document.createElement(‘script’);
script.type=”text/javascript”;
if(!false && !false && !false && url.indexOf(‘colombia_v2’)!== -1){
script.src = url;
} else if (!false && !false && !false && url.indexOf(‘sdkloader’)!== -1) {
script.src = url;
} else if (!false && (url.indexOf(‘tvid.in/sdk’) !== -1 || url.indexOf(‘connect.facebook.net’) !== -1)) {
script.src = url;
} else if (url.indexOf(‘colombia_v2’)== -1 && url.indexOf(‘sdkloader’)== -1 && url.indexOf(‘tvid.in/sdk’)== -1 && url.indexOf(‘connect.facebook.net’) == -1){
script.src = url;
}
script.async = true;
document.body.appendChild(script);
});
}
}
More News
As stock market booms, malpractices of Harshad, Ketan era are back: Harsh Goenka – Times of India
Colombia central bank nudges 2024 inflation outlook up to 5.5% – Times of India
Spain’s Ferrovial expects Nasdaq listing in early May – Times of India