Saturday, December 01, 2018

Breather for airlines as jet fuel prices cut by 11% for December

New Delhi: Oil companies on Saturday lowered aviation turbine (ATF) prices by almost 11%, giving some respite to struggling-to-survive Indian carriers. In Delhi and Mumbai, a kilo-litre of jet fuel will cost Rs 68,050.97 and Rs 67,979.58 in December, respectively down from Rs 76,380 and Rs 76,013.2 last month.

While jet fuel prices are linked to Brent crude, the aviation ministry has long been asking for ATF to be brought under GST in a bid to rationalise different tax rates of different states. Jet fuel for domestic flights in India is among the most expensive globally.

“We have requested the finance ministry for two things — bring ATF under GST and for input tax credit for aircraft of Indian carriers being serviced abroad,” aviation secretary R N Choubey said recently.

Rating agency ICRA recently said India’s domestic airline industry is facing a double whammy with increasing ATF prices and depreciation of the Rupee against the US Dollar. ATF is the single largest cost element for airlines, accounting for almost 30% to 40% of their total operating expenses.
01/12/18 Times of India