Ministry, oil PSUs to talk on checking ATF prices

New Delhi: The civil aviation ministry would hold a dialogue with the oil companies on Tuesday on the checking the price of aviation turbine fuel, industry sources said. The oil PSUs, which enjoy a monopoly on the supply of jet fuel in the country, keep a high marketing margin of 16% to 21%, that further increases the high price of ATF.
Besides the ministry officials, representatives from all the airlines are also expected to attend the meeting and discuss way of rationalising the fuel prices.
The ATF price in India is at Rs 37,800 per kilolitre against Rs 21,800 in the international market, which is about 73% higher (at April ‘07 prices). Though the government has been trying to bring ATF under the declared goods category, under which the ATF will attract only 4% sales tax, sales tax on ATF varies from 4% to 39%. It also has an excise duty of 8.25% and customs duty of 20%.
10/07/07 Atreyee Dev Roy/Financial Express

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Categories: General Aviation Jul 2007