New Delhi, October 31
In a major relief to the aviation sector, prices of jet fuel prices will be cut drastically as a result of around 16.8 per cent reduction in sale price and customs duty exemption.
The oil companies are expected to announce new prices by Saturday. Indian Oil, Bharat Petroleum and Hindustan Petroleum this evening had cut jet fuel price in Delhi by Rs 9,429.87 per kl to Rs 47,017.93 per kl in line with fall in international oil prices.
Soon after, the finance ministry announced that ATF would not be charged with 5 per cent import duty, thereby bringing down the base price of the fuel.
“The aviation sector is experiencing financial stress, which is partly due to high price of aviation turbine fuel (ATF). In order to give relief to this sector, the basic customs duty of 5 per cent has been abolished,” a statement issued by the finance ministry said.
The exemption would result in lowering of the base price of ATF and, consequently, lowering the incidence of excise duty and VAT, giving substantial relief to the aviation sector.
Oil company officials said the price cut announced this evening had been calculated after taking into account the import duty. Now the prices are likely to further fall on an average by Rs 1,800-2,000 per
kl.
