Centre cuts excise duty on jet fuel from 14% to 11%
Aviation turbine fuel prices have increased by 9.5% since July.
The Centre on Wednesday cut excise duty on jet fuel from 14% to 11% with effect from October 11. This move seeks to help the aviation sector, which has take a hit from rising fuel prices and the fall of the rupee, PTI reported citing a notification by the department of revenue in the Ministry of Finance.
Aviation turbine fuel prices are at their highest since January 2014. The fuel in Delhi currently costs Rs 74,567 per kilolitre, while it is Rs 79,736 per kilolitre in Kolkata, Rs 74,177 in Mumbai and Rs 75,521 in Chennai.
Aviation turbine fuel prices have increased by 9.5% since July. In Delhi, prices have risen 58.6% since July 2017. On September 26, the Centre increased customs duty on 19 items, including aviation fuel.
On October 4, the government cut fuel prices by Rs 2.50 per litre. The revenue department of the Ministry of Finance cut excise duty by Rs 1.50 and oil marketing companies absorbed Re 1 per litre. Several state governments under the rule of the Bharatiya Janata Party subsequently reduced petrol and diesel prices by Rs 2.50 per litre.