Aviation ministry and oil PSUs to discuss ATF prices
10 Jul 2007
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New Delhi: The civil aviation ministry is scheduled to hold a meeting with oil PSUs on Tuesday in an effort to check the rise in the price of aviation turbine fuel (ATF), industry sources said. The oil PSUs, which enjoy a monopoly on the supply of jet fuel in the country, have been periodically portrayed as being responsible for the high price of ATF in the country.
Besides ministry officials, airline representatives are also expected to attend the meeting and discuss ways to rationalise fuel prices.
The price of ATF in India, at April '07 rates, is about 73% higher at Rs37,800 per kilolitre, compared to Rs21,800 in the international market.
It is doubtful to what extent oil PSUs are entirely responsible for such high rates, for ATF attracts sales tax in varying rates from 4% to 39%, along with an excise duty of 8.25% and customs duty of 20%.
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