The latest hike, which is sixth in the last one year, has made ATF rates breach the INR 1 lakh per kilo litre mark across the country
Aviation Turbine Fuel (ATF) prices in the country have once again fuelled the demand for including the ATF under the GST in the country. Jet fuel rates in the country have gone up by 18 per cent in the latest hike as the international crude prices soared to USD 140.
The latest hike, which is sixth in the last one year, has made ATF rates breach the INR 1 lakh per kilo litre mark across the country.
“We believe that such measures are needed now more than ever to offset this increase in cost and make flying viable for airlines and affordable for consumers. Rationalisation of taxes will result in high growth for the sector, creating a multiplier effect throughout the economy, promoting trade, tourism and job creation.”
— Ronojoy Dutta, CEO, IndiGo
Reacting to the latest hike Ronojoy Dutta, CEO, IndiGo, said, “Over the past few weeks, crude oil prices have soared to a 7-year high nearing USD 140 per barrel, due to the ongoing conflict in Europe. This has resulted in over 50 per cent ATF price hikes from January 2022 to date, including the 18 per cent hike today. This situation adversely impacts us, given that ATF constitutes over 45 per cent of our operational costs. We have been in talks with the government to bring ATF under GST as it brings the benefit of the input tax credit. We believe that such measures are needed now more than ever to offset this increase in cost and make flying viable for airlines and affordable for consumers. Rationalisation of taxes will result in high growth for the sector, creating a multiplier effect throughout the economy, promoting trade, tourism and job creation.”
With the 18 per cent increase in ATF, the rate of ATF in the national capital has gone up by INR 17,135.63 per kl to reach INR 110,666.29 per kl. In Mumbai, the ATF price rose to INR 109,119.83, and in Kolkata, INR 114,979.70.
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