Jet Fuel

Jet fuel (ATF) price on Wednesday was hiked by 4 per cent in line with firming international oil prices but petrol and diesel rates remained on freeze for a record 10th month in running. Aviation turbine fuel (ATF) price was increased by Rs 4,218 per kilolitre, or 3.9 per cent, to Rs 1,12,356.77 per kl in the national capital, according to a price notification of state-owned fuel retailers. The increase follows three rounds of reduction since November. The price on January 1 was reduced to Rs 1,08,138.77 per kl from Rs 1,17,587.64. Prior to that, the price was slashed by 2.3 per cent on December 1 and 4.19 per cent on November 1. The rate hike will increase the burden on airlines for whom fuel makes for almost 40 per cent of the operating cost. ATF price is revised on the 1st of every month based on the average rate of international benchmark and foreign exchange rates. Petrol and diesel prices, however, continued to remain on freeze for a record tenth month in a row. Petrol costs

Jet fuel (ATF) price was on Thursday reduced by 2.3 per cent, reflecting softening international oil prices but petrol and diesel rates remained on freeze for a record eighth month in running. Aviation Turbine Fuel (ATF) price was cut by Rs 2,775 per kilolitre, or 2.3 per cent, to Rs 1,17,587.64 per kl in the national capital, according to a price notification of state-owned fuel retailers. The rate reduction, which will provide relief to airlines for whom fuel makes for almost 40 per cent of the operating cost, comes on the back of a Rs 4,842.37 per kl, or 4.19 per cent, reduction last month. ATF price is revised on the 1st of every month based on the average rate of international benchmark and foreign exchange rates. Petrol and diesel prices, however, continued to remain on freeze for a record eighth month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62. State-owned fuel retailers are supposed to revise petrol and diesel prices dai

in Dehradun, scientists are working with partners including Boeing Co. to get global approvals for their biofuel, which is made from waste cooking oil and the seeds of plants

The government is working on mandating blending of jet fuel with sustainable aviation fuel as the country works on ways to reduce emissions, Civil Aviation Secretary Rajiv Bansal said on Tuesday. "We are committed to reducing emissions by fossil fuels... the (civil aviation) ministry is working closely with the ministry of petroleum and natural gas on the issues related to Sustainable Aviation Fuel (SAF)," he said. He was speaking at the IATA Aviation Energy Forum here. The International Air Transport Association (IATA) is an international grouping of airlines. Bansal said both ministries are working to mandate a certain percentage of blending. "... that is still work in progress. We do realise that unless we mandate over a period of time, demand will not be created," he added. Elaborating on SAF, he said there are two important things -- the feed stock and production. "Do we have as a country adequate feedstock for producing SAF? Are there technologies in place, proven, time-test

Union Civil Aviation Minister Jyotiraditya Scindia on Tuesday said there is a huge demand for air travel after the pandemic and urged eight states and Union Territories to reduce the tax on jet fuel. Air traffic growth will be driven by smaller cities, he said while speaking at the Civil Aviation Ministers' conference in the national capital. Domestic air traffic is inching closer to pre-Covid level and in recent times, the daily passenger numbers crossed the four lakh mark twice. Scindia said that Value Added Tax (VAT) on jet fuel is still high in eight states and Union Territories in the range of 20-30 per cent and urged them to reduce the rate. Jet fuel cost accounts for a significant part of an airline's operational costs. The minister requested Goa, Assam, Delhi, Maharashtra, West Bengal, Rajashthan, Bihar and Tamil Nadu to reduce the VAT on Aviation Turbine Fuel (ATF). "New growth to come from Tier 2 and 3 cities," he said and emphasised the need to bring down entry barrie

The oil ministry on Tuesday said the levy of windfall profit tax was a response to a dynamic situation and its design provides for recalibration based on market inputs and feedback. "Crude oil prices have witnessed extreme volatility in 2022. This has resulted in very high prices for end consumers at petrol pumps. "Countries around the world have implemented various measures to mitigate the adverse impacts on consumers. 'Windfall tax' is one of the measures which helps in dealing with the situation," the ministry said in a statement. India first imposed windfall profit tax on July 1, joining a growing number of nations that tax super normal profits of energy companies. While duties were slapped on the export of petrol, diesel and jet fuel (ATF), a Special Additional Excise Duty (SAED) was levied on locally produced crude oil. "The extent of its applicability, reference period, amount of cess/ tax/ duty, the incidence of tax liability, a mechanism for review are integral to such a .

The oil ministry has sought a review of the two-and-a-half-month old windfall profit tax on domestically produced crude oil saying it goes against the principle of fiscal stability provided in contracts for finding and producing oil. The ministry in the August 12 letter, reviewed by PTI, sought exemption for fields or blocks, which were bid out to companies under Production Sharing Contract (PSC) and Revenue Sharing Contract (RSC), from the new levy. It stated that companies have been since the 1990s awarded blocks or areas for exploration and production of oil and natural gas under different contractual regimes, wherein a royalty and cess is levied and the government gets a pre-determined percentage of profits. The ministry, according to the letter, was of the opinion that the contracts have an in-built mechanism to factor in high prices as incremental gains get transferred in form of higher profit share for the government. Emails sent to the oil ministry as well as the finance ..

The government raised the tax on the export of diesel and jet fuel (ATF) and hiked the windfall profit levy on domestically-produced crude oil in line with rising product margins and oil prices

The government has hiked the windfall profit tax on the export of diesel to Rs 13.5 per litre and that on jet fuel exports to Rs 9 per litre. The levy on domestically-produced crude oil too has been increased by Rs 300 per tonne to Rs 13,300. At the fourth fortnightly review, the government raised the windfall profit tax on the export of diesel to Rs 13.5 per litre from Rs 7, while on ATF (Aviation Turbine Fuel) exports, it was hiked to Rs 9 per litre from Rs 2, according to a finance ministry notification issued on Wednesday.

OMCs to shift to single uniform system instead of the prevailing dual pricing mechanism for domestic and overseas airlines

Scindia said that as it stands today, the fares of airlines are not close enough to the low portion of the fare cap and are very far away from the high portion of the fare cap.

Jet fuel (ATF) prices on Saturday were reduced by 2.2 per cent, reflecting a fall in international oil prices

Export taxes on petrol are likely to see the steepest reduction, while levies on diesel and jet fuel could also be lowered to adjust the impact of price declines

The review is based on the premise that if crude prices fall, then windfall gains will cease and new taxes would be rollback

India's factory output expanded at its slowest pace in nine months in June. More on that in our top headlines

Price hikes may plague demand, robust passenger traffic notwithstanding

In the nine hikes since January 1, the jet fuel prices have been increased by Rs 49,017.8 per kl or nearly 55%

The price of aviation turbine fuel (ATF) -- the fuel that helps aeroplanes fly -- has been increased by Rs 19,757.13 per kilolitre, or 16.26%, to Rs 1,41,232.87 per kl (Rs 141.2 per litre) in Delhi

Diesel, the most-used fuel in the country, saw sales jumping 47.8 per cent year-on-year to 3.4 million tonnes between June 1-14.

India's oil product demand in May was up 860,000 barrels per day or 22 per cent year-on-year from a low base in 2021, S&P Global Commodity Insights said in a note.