Saturday, December 26, 2009

ATF is more expensive at Indian airports

Mumbai: A recent analysis by industry body Assocham reveals that aviation turbine fuel (ATF) prices at Indian airports is much higher, compared with eleven other international airports across Asia, Europe and North America as on July 2009.
In India, ATF is priced lowest at the Hyderabad airport. Yet, it is 46% higher than Kuala Lumpur, where ATF is priced at Rs 22,800 per kilolitre. ATF, which is priced highest at Kolkata, is almost twice as expensive as that in Kuala Lumpur.
While the prices of ATF range between Rs 23,000- 26,000 at international airports, in India the cost is anything between Rs 34,000 -Rs 47,000 per kilolitre at Mumbai, Delhi, Bangalore and Kolkata airports. The airports with which comparisons are drawn in the study are Bangkok, Dubai, Hong Kong, Jakarta, Kuala Lumpur, Seoul, Singapore, Tokyo, London, Paris and New York.
Assocham president, Swati Piramal has taken up the case and has written to the government that the sustainability of the airline industry would be severely eroded if it is not recognised as a ‘core industry’, which will ultimately lower taxes to 4%on ATF across India. Currently, taxes on ATF range from from a mere 4% in Andhra Pradesh to over 30% in several other states.
26/12/09 Financial Express
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