Airlines’ fuel import plans grounded

Domestic airlines are unlikely to get permission to import jet fuel for their flights as current suppliers...

Domestic airlines are unlikely to get permission to import jet fuel for their flights as current suppliers — state-run oil marketing companies (OMCs) — have rejected the request, saying that the imports would exacerbate the ATF surplus and lead to product handling problem.

However, siding with the airliners, the three OMCs have jointly recommended to the petroleum ministry that the sales tax on ATF could be rationalised to provide relief on ATF as the levy accounts for half the cost of running a flight.

“Instead of allowing airlines to import ATF, the possibility of making sales tax/VAT uniformally low in all states or pronouncing ATF as declared goods attracting sales tax/VAT at the rate of 4 per cent may be considered,” said IOC, speaking for the marketing troika of IOC, BPCL and HPCL.

Story continues below this ad

It said that landed cost of imports was about the same as ATF produced by their refineries and the differences were mainly due to variations in applicable taxes, which are not applicable on supplies to international airlines.

Duties and taxes account for 40 per cent of ATF cost with sales tax alone responsible for inflating price by an average 26 per cent. This makes ATF in India 50 per cent costlier than global prices. Around 4.7 MT of jet fuel is sold annually and domestic airlines consume half of it.

India dismisses NATO chief’s claim of ‘Delhi now on phone with Moscow’ as ‘baseless’

India29 min ago

India denies NATO chief's claim that US tariffs on Russian oil are pushing PM Modi to seek clarification from Putin on Ukraine strategy. MEA calls statement "factually incorrect and baseless," urges NATO to take more responsibility. Trump's tariffs on India have led to Modi seeking clarification from Putin, says Rutte. Modi and Putin have discussed resolving the conflict peacefully.

View all shorts

Live Blog

PHOTOS