According to a Press Trust of India (PTI) report, prices of jet fuel prices will be cut drastically as a result of 16.8 per cent reduction in sale price and customs duty exemption. Indian Oil Limited (IOL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) yesterday cut Aviation Turbine Fuel (ATF) price in Delhi by Rs 9,429.87 per kilolitre to Rs 47,017.93 per kilolitre in line with the fall in the international oil prices.
The Finance Ministry also announced that ATF would not be charged with five 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 ATF. In order to give relief to this sector, the basis customs duty of five per cent has been abolished,” stated a statement issued by the Finance Ministry.
The oil companies will announce new prices today. Though there are no imports of jet fuel and it is a freely priced petroleum product, the price of domestically produced fuel is based on import parity price factoring in the basic customs duty. |