- Airlines, businesses face increased fuel costs from October 1.
- Aviation turbine fuel rose Rs 16/litre; commercial LPG up Rs 62.59.
- Government reduced windfall tax on diesel and ATF exports.
Airlines and commercial establishments will face higher fuel costs from October 1, with aviation turbine fuel (ATF) prices rising sharply and commercial LPG rates also moving up. State-owned oil companies have raised ATF prices by Rs 16 per litre, while the price of a 19-kg commercial LPG cylinder has increased by Rs 62.59.
At the same time, the government has reduced the windfall tax on exports of diesel and ATF for the fortnight beginning October 1. Petrol export duty, however, has been retained at the existing level.
ATF Price Rises To Rs 137 Per Litre
The latest ATF revision takes the price for domestic airlines to Rs 137 per litre, compared with Rs 121 previously.
The increase comes after ATF prices were raised by Rs 6.28 per litre, or 5.46 per cent, in September. This followed a Rs 5 per litre hike in August.
Fuel prices are a major cost component for airlines. ATF can account for up to 40 per cent of operating costs, making monthly fuel price revisions an important factor for carriers.
According to state-owned oil companies, ATF prices are revised on the first day of each month based on international benchmark prices and movements in the rupee-dollar exchange rate.
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Commercial LPG Rates Move Up After Two Monthly Cuts
The October revision also brings a rise in commercial cooking gas prices. The rate of a 19-kg commercial LPG cylinder has gone up by Rs 62.59.
The increase follows a much smaller Rs 9.50 per cylinder hike in September. Commercial LPG prices had previously fallen sharply, with rates cut by Rs 192 in August and Rs 183.50 in July.
The price trajectory has been volatile in recent months. Between February and June, commercial LPG became Rs 1,373 more expensive, with the price climbing from Rs 1,740.50 to Rs 3,113.50 per 19-kg cylinder. Prices subsequently declined in July and August before rising again.
The June surge had come amid disruptions to global energy supplies and elevated international prices.
Household LPG, Petrol And Diesel Prices Unchanged
The latest revision does not affect domestic LPG prices.
The price of a 14.2-kg household LPG cylinder remains unchanged at Rs 942. Domestic cooking gas prices had risen by Rs 89 per cylinder between March and June after the West Asia crisis disrupted supplies and pushed international energy prices higher.
Petrol and diesel prices have also been kept unchanged this month. Both fuels had last been increased by around Rs 7.50 per litre in May.
Prices of ATF and LPG can differ across states because of local taxes, including VAT.
Government Cuts Export Tax On Diesel And ATF
Alongside the monthly fuel price revision, the government has lowered the windfall gains tax applicable to exports of diesel and ATF.
The Finance Ministry, in a notification issued on September 30, said the special additional excise duty (SAED), along with road and infrastructure cess, on diesel exports has been reduced to Rs 16 per litre from Rs 20.
For ATF exports, the duty has been cut to Rs 10.50 per litre from Rs 15.
The export duty on petrol, meanwhile, remains unchanged at Rs 0.50 per litre. The revised rates will apply from October 1 for the next fortnight.
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Why The Windfall Tax Was Introduced
The government introduced the export levy on diesel and ATF on March 27, amid escalating tensions in West Asia. The rates have since been reviewed every fortnight, while the levy on petrol exports was introduced from May 16.
The measure was aimed at maintaining domestic availability of petroleum products and discouraging exporters from taking advantage of price differences as international crude oil prices rose following the West Asia conflict.
The Finance Ministry has also retained the existing duty rates applicable to petrol and diesel cleared for domestic consumption.
Input By : PTI
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