After petrol and diesel, the government Wednesday cut excise duty on jet fuel to 11% to give relief to the aviation industry that has been in recent weeks hit hard by rising fuel prices and plummeting rupee.
Excise duty on (ATF) has been reduced to 11% from 14% with effect from October 11, a notification issued by the revenue department in the finance ministry said. Jet fuel prices this month hit their highest level since January 2014 as rising international oil prices and plummeting rupee value pushed rates. The fuel in Delhi currently costs Rs 74,567 per kilolitre (Rs 74.56 per litre) and in Mumbai, it is priced at Rs 74,177 per kl. ATF prices, which currently are cheaper than petrol and diesel in Delhi, have since July spiked up by 9.5%. They have been on upswing since July last year, rising every month except in July 2018. Jet fuel was priced at Rs 47,013 per kl in July last year and has risen by 58.6% since then.
Just last week, the government had cut excise duty on petrol and diesel by Rs 1.50 per litre and asked state-owned oil firms to subsidise the fuel by another Re 1 a litre. That step was matched by BJP-ruled states cutting local sales tax or VAT by an equal proportion to give customers hit by high auto fuel prices a relief of about Rs 5 per litre. The aviation industry has been seeking lower taxes to help offset the impact of high oil prices. Among others, Ajay Singh of Spicejet had voiced concerns over rising international oil prices and asked the government to take up some policy measures to help the industry. Read more
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