Over 5% Hike In Jet Fuel Prices But Indian Airlines Remain Shielded
· Free Press Journal
Aviation turbine fuel (ATF) prices have been hiked by over 5 percent for international airlines on Friday. This is the second consecutive month that jet fuel prices have seen an increase amid the energy crisis due to the West Asia conflict.
In Delhi, the prices have been raised by $76.55 per kilolitre to $1,511.86 per kilolitre.
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However, domestic airline companies have been shielded from the latest increase in prices.
Last month, jet fuel prices were more than doubled, but domestic airlines were partially shielded by the government from the steep hike.
Indian Airlines Seek Suspension Of Excise Duty, High VAT On ATF As Operations Become ‘Unviable’Only 25 percent of the total price hike was passed on to Indian flight operators, while international carriers had to bear the full burden.
This was part of various steps taken by the government to minimise the impact of the fuel crisis on the common people.
While the prices of commercial LPG cylinders have been increased by over Rs 900, the cost of domestic cylinders has not been increased.
The latest hike in jet fuel prices has come days after a letter written by the Federation of Indian Airlines to the Ministry of Civil Aviation, flagging the operational challenges faced by airlines due to unprecedented fuel costs.
Centre In Talks With Four States To Reduce VAT On ATF Amid Rising Energy CostsIn the letter, Indian airline companies had asked the government to temporarily suspend the 11 percent excise duty on aviation turbine fuel (ATF) for domestic operations.
While seeking “urgent support” from the government on ATF pricing, the federation warned that the airline industry in India was under extreme stress and “on the verge of closing down or stopping its operations.”
It had also said that the crack spread, that is, the margin charged by oil refining companies, was increasing despite no significant rise in the underlying costs. This was limiting the benefit of any easing in crude oil prices.