Lok Sabha Question No. 1932 (UNSTARRED), answered on 2022-07-28
Subject: Price of ATF
Ministry: CIVIL AVIATION
Asked by: Su Thirunavukkarasar

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

## LOK SABHA

UNSTARRED QUESTION NO. : 1932

(To be answered on the 28 th  July 2022)

## PRICE OF ATF

## 1932. SHRI THIRUNAVUKKARASAR SU:

## Will the Minister of CIVIL AVIATION

## ANSWER

be pleased to state:-

- (a) whether higher State taxes coupled with greater incidence of central excise duties, Ukraine-Russia War and fallen rupee value has resulted in Aviation Turbine Fuel (ATF) becoming more expensive and if so, the details thereof; (b) whether there is a demand from the airline industry to reduce ATF duties and if so, the details thereof along with the reaction of the Government thereto;
- (c)  whether the Government has held any consultations with the concerned stakeholders and undertaken any measures to control the rising aviation fuel prices in the country;
- (d) if so, the details thereof; and
- (e) if not, the reasons therefor?

Minister of CIVIL AVIATION

## (a)   Yes, sir.

The table indicating price of ATF, Exchange Rate and Price of ATF before Taxes and after Taxes for Delhi (T3) as on 1st January, 2022 & 16th July, 2022 is Annexed.

(b) to (e): Government has constantly engaged in consultations with Airlines and OMCs on the issue of ATF pricing and has responded to aviation stakeholder needs and interests. Taking cognizance of the high VAT on ATF being levied by States, the issue of reduction in Value-Added Tax (VAT) on Aviation Turbine Fuel (ATF) was taken up with the States/ Union Territories. As a result of the efforts and follow-ups by the Ministry, VAT on ATF has since then been reduced by sixteen States/ UTs viz.: (i) Andaman & Nicobar Islands, (ii) Uttarakhand, (iii) Jammu & Kashmir, (iv) Ladakh, (v) Himachal Pradesh, (vi) Tripura, (vii) Madhya Pradesh, (viii) Haryana, (ix) Karnataka, (x) Uttar Pradesh, (xi) Gujarat, (xii) Dadra & Nagar Haveli and Daman & Diu, (xiii) Arunachal Pradesh, (xiv) Manipur, (xv) Jharkhand and (xvi) Mizoram.

*****

(Shri Jyotiraditya M. Scindia)

Annex Annexure  in  reply  to  Lok  Sabha  Unstarred  Question  No.  1932  for  28-07-2022

regarding Expensive ATF.

Price of ATF, Exchange Rate and Price of ATF before Taxes and after Taxes for Delhi (T3) as on 1 st January, 2022 & 16 th  July, 2022 are tabulated below:

| Price Effective   | ATF (Jet kero)(*) ($/bbl)   | Exchange Rate (*) (Rs/KL)   | Price of ATF at Delhi - T3   | Price of ATF at Delhi - T3   | Price of ATF at Delhi - T3   | Price of ATF at Delhi - T3   |
|-------------------|-----------------------------|-----------------------------|------------------------------|------------------------------|------------------------------|------------------------------|
| Price Effective   | ATF (Jet kero)(*) ($/bbl)   | Exchange Rate (*) (Rs/KL)   | Price Before Tax (Rs/KL)     | Excise Duty (11%) Rs/KL      | VAT Delhi 25% (RS/KL)        | Price After Tax (Rs/KL)      |
| 01.01.2022        | 83.28                       | 75.56                       | 54,839.49                    | 6,032.34                     | 15,217.96                    | 76,089.79                    |
| 16.07.2022        | 159.21                      | 78.70                       | 99,566.08                    | 10,952.27                    | 27,629.59                    | 1,38,147.93                  |
| Increase          | 75.93                       | 3.14                        | 44,726.59                    | 4,919.93                     | 12,411.63                    | 62,058.15                    |

*Average of Pricing period of Effective date

Source: Indian oil Corporation Limited (IOCL)