Jet fuel price cut by 2.6%; to cost less than petrol, diesel

NEW DELHI: Jet gasoline or ATF prices have been Thursday reduce by means of 2.6 per cent following the government resolution to decrease excise responsibility at the gasoline.

Aviation turbine gasoline (ATF) is now less expensive than petrol and diesel.

ATF in Delhi was reduce by means of Rs 1,962 per kilolitre (kl), or 2.6 per cent, to Rs 72,605 per kl (Rs 72.6 per litre), according to a cost notification issued by means of state-owned oil companies.

It costs Rs 72,225 per kl in Mumbai, down from Rs 74,177.

Even on the lowered price, ATF is at its best possible level since March 2014.

The executive had Wednesday reduce excise responsibility on jet gasoline to 11 per cent from 14 per cent in the past to give reduction to the aviation industry that has been in recent weeks hit hard by means of rising gasoline prices and plummeting rupee.

The transfer got here after jet gasoline prices this month hit their best possible level since January 2014. Rates had risen by means of 9.five per cent since July, and over 58.6 per cent since July ultimate 12 months.

While the ATF has been less expensive than petrol prior to, the gasoline utilized in aeroplanes is less expensive than even diesel now.

Petrol in Delhi costs Rs 82.36 per cent and diesel is priced at Rs 74.62.

Just ultimate week, the government had reduce excise responsibility on petrol and diesel by means of Rs 1.50 per litre and requested state-owned oil companies to subsidise the gasoline by means of any other Re 1 a litre. That step was matched by means of BJP-ruled states cutting native gross sales tax or VAT by means of an equivalent proportion to give shoppers hit by means of high auto gasoline prices a reduction of about Rs five per litre.

While the dual strikes on auto fuels had ended in a drop in price of petrol from a file high of Rs 84 per litre to Rs 81.50 in Delhi and that of diesel from an all-time high of Rs 75.45 to Rs 72.95 a litre on October five, rate hikes on subsequent days have driven prices upwards.

Petrol has risen by means of 86 paise per litre since then and diesel by means of Rs 1.67, negating all the excise responsibility reduction in lower than per week.

Petrol in Mumbai costs Rs 87.82 per litre and diesel is priced at Rs 78.22.

The excise responsibility reduce on ATF got here after the government's transfer to raise customs responsibility at the gasoline and 18 other non-essential import items ultimate month, in a bid rein in current account deficit and shore up the rupee.

Basic customs responsibility of five per cent was imposed on ATF. It in the past attracted nil responsibility. This ended in an increase of Rs 2,000 per kl in prices.

The executive had in 2016 hiked excise responsibility on ATF to 14 per cent from eight per cent.

ATF like petrol and diesel isn't covered by means of the goods and services tax (GST) regime, that on July 1 ultimate 12 months amalgamated 17 other central and state taxes.

The central executive currently charges 14 per cent excise responsibility on ATF. On most sensible of this, states charge as much as 30 per cent gross sales tax or VAT - Odisha and Chhattisgarh have five per cent VAT while Tamil Nadu taxes ATF at 29 per cent, Maharashtra and Delhi at 25 per cent and Karnataka at 28 per cent.

When the GST was introduced on July 1 ultimate 12 months, 5 commodities -- crude oil, natural gasoline, petrol, diesel, and aviation turbine gasoline (ATF) -- have been kept out of its purview in the intervening time.
Jet fuel price cut by 2.6%; to cost less than petrol, diesel Jet fuel price cut by 2.6%; to cost less than petrol, diesel Reviewed by kailash soni on October 11, 2018 Rating: 5
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