Centre Cuts ATF Price, Revises Export Duties from July 1
Jet fuel price reduced by ₹5 per litre; domestic petrol and diesel excise duty unchanged
- Centre revised export duties on petrol, diesel and ATF from July 1.
- ATF price for domestic airlines cut by ₹5 per litre to ₹110.
- Excise duty on domestic petrol and diesel remains unchanged.
- Lower jet fuel prices are expected to reduce airline operating costs.
GG News Bureau
New Delhi, 1st July: The Centre has revised export duties on petrol, diesel and aviation turbine fuel (ATF) with effect from July 1 while keeping excise duty on petrol and diesel sold in the domestic market unchanged.
The government has reduced the ATF price for domestic airlines by ₹5 per litre, bringing it down to ₹110 per litre from ₹115 per litre. On a bulk basis, the price has been lowered to ₹1.10 lakh per kilolitre from ₹1.15 lakh per kilolitre.
The reduction is expected to provide relief to airlines, as aviation turbine fuel accounts for nearly 40 per cent of their operating costs. Lower fuel prices could improve profitability and help moderate airfares.
The revision follows the government’s fortnightly review of fuel prices based on international crude oil trends. It is the first cut in ATF prices since the spike caused by tensions in West Asia.
The Centre had also introduced a voluntary ATF price stabilisation scheme during the West Asia crisis, allowing domestic airlines to lock in fuel prices for up to three years to reduce exposure to global oil price volatility. Airlines outside the scheme will continue purchasing fuel at prevailing market-linked rates.
