Flight Ticket Rates May go Down as Jet Fuel Prices Slashed by 11 Per Cent For December
Following the reduction in prices of jet fuel, airlines may cut rates on tickets of some flights.
New Delhi, December 1: In a big relief to cash-strapped Indian airlines, oil companies on Saturday slashedĀ aviation turbine fuel (ATF) prices by almost 11 per cent for December month.Ā The price per kilolitre (kl) of jet fuel after the latest cutĀ in Delhi, India's busiest airport, isĀ Rs 68,050.97 in December, down from Rs 76,380 last month. In Mumbai, a kilolitre of jet fuel will costĀ Rs 67,979.58, down fromĀ Rs 76,013.2 last month.
Following the reduction in prices of jet fuel, airlines may cut rates onĀ tickets of some flights. The ATF cost had been on the upswing since July last year, spiking by nearlyĀ 60 per cent since then. Last month, oil companies raised the prices of aviation turbine fuel by 5.2 per cent. Following the hike, in Delhi, a kilolitre of jet fuel was priced at Rs 76,378.8 up from Rs 72,605. The hike brought ATF price in KolkataĀ Rs 81,441.06 per kl - breaching the Rs 80,000-mark for the first time since July 2014.Ā Centre Hikes Import Duty on ATF.
Meanwhile, the aviation ministry reiterated the long-standing demandĀ to include ATF under the Goods and Services Tax (GST) regime, which could ensure a "fair price regulation".Ā āWe have requested the finance ministry for two things ā bring ATF under GST and for input tax credit for aircraft of Indian carriers being serviced abroad,ā aviation secretary R N Choubey said recently.
Aviation Minister Suresh Prabhu had told news agencyĀ PTIĀ that bringing turbine fuel under GST could bring down the operational cost byĀ 35-40 per cent approximately.Ā In October, the central government had reducedĀ the excise duty on aviation turbine fuel from 14 per cent to 11 per cent. The cut was announcedĀ in the backdrop of rising crude prices, combined with the plummeting rupee, which has pushed a number of flyers into losses.
(The above story first appeared on LatestLY on Dec 01, 2018 03:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
