At the sixth fortnightly review, the government reduced the tax on domestically produced crude oil to Rs 8,000 per tonne from Rs 10,500 per tonne
The Petroleum Ministry has submitted the data of price movement of global crude oil prices over the past fortnight to revenue department pitching for a cut
Most airlines in India are in talks with oil marketing companies including Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Indian Oil Corporation and will sign supply agreements with OMCs by October.
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 per litre.
In an exclusive interview with CNBC-TV18, the Minister of Civil Aviation and Steel, Jyotiraditya Scindia, assured that both are being considered and worked upon by the government.
According to market experts and industry participants, ticket prices in India are most likely not going to fall due to high fuel costs, the depreciating rupee, and the struggling balance sheet of airlines.
This is only the third reduction in rates for air turbine fuel (ATF) prices this year
Jet fuel (ATF) prices on Saturday were reduced by 2.2 per cent, reflecting a fall in international oil prices.
In a surprise move, the government on July 1 slapped export duties on petrol and ATF (Rs 6 per litre or USD 12 per barrel) and diesel (Rs 13 a lire or USD 26 a barrel) and imposed a windfall tax on domestic crude production (Rs 23,250 per tonne or USD 40 per bbl).
In a notification, the ministry said that ATF supplied as fuel to domestic carriers on international routes would continue to be exempted from basic excise duty from July 1.
A Rs 6 per litre tax on export of petrol and ATF and Rs 13 per litre tax on export of diesel is effective from July 1, finance ministry notifications showed.
The government slapped a Rs 6 per litre tax on exports of petrol and ATF and Rs 13 per litre on exports of diesel.
A minimum 10-15 per cent increase in air fares is required to ensure that cost of operations are better sustained, Singh said in a statement.
The price of aviation turbine fuel (ATF) -- the fuel that helps aeroplanes fly -- was hiked by Rs 6,188.25 per kilolitre, or 5.29 per cent, to Rs 1,23,039.71 per kl (Rs 123 per litre) in the national capital, according to a price notification of state-owned fuel retailers.
The aviation industry wants the government to include ATF under the goods and services tax (GST) to benefit from input tax credit and reduce the stress on operations.
ATF prices are hiked by Rs 3,649.13 per kilolitre to Rs 1,16,851.46 (or, Rs 116.8 per litre) in Delhi, while in Mumbai it now costs Rs 1,15,617.24 per kl, Rs 1,21,430.48 in Kolkata, and Rs 1,20,728.03 in Chennai
Aviation turbine fuel (ATF) - the fuel that helps aeroplanes fly - was hiked by Rs 2,258.54 per kilolitre, or 2 per cent, to Rs 1,12,924.83 per kl in the national capital, according to a price notification by state-owned fuel retailers.
The increase - sixth straight this year - led to prices soaring past the Rs 1-lakh-per-kilolitre mark for the first time ever.
These travellers had to make alternate arrangements themselves as these airlines did not make arrangements to accommodate them on other flights or offer to reschedule tickets. Instead, passengers were given a refund of the tickets.
Mumbai-Delhi fares may go up by 15-20% as soon as mid-March, experts said, adding that increases are inevitable given the rise in global oil prices.
This is the fifth hike in jet fuel or Aviation Turbine Fuel (ATF) prices this year following an unrelenting rise in global oil prices, but petrol and diesel prices remained unchanged for a record 116th day in a row, coinciding with electioneering to elect new governments in states like Uttar Pradesh and Punjab.
ATF prices have climbed 22.3 percent since December 15, or by Rs 16,497.38 per kilolitre (kl) in Delhi. The latest increase of 5.2 percent was announced on February 15. ATF now stands at around Rs 90,519.79 per kl in Delhi.
This is the fourth hike in jet fuel or Aviation Turbine Fuel (ATF) prices in less than two months following a spike in global oil prices but petrol and diesel prices remained unchanged for a record 103rd day in a row, coinciding with electioneering to elect new governments in states like Uttar Pradesh and Punjab.
It is the state governments, who levy VAT on aviation fuel, who are opposing the move in the GST council