New Delhi: After petrol and diesel the government has cut excise duty on aircraft fuels. Excise duty has been reduced to 11 percent on airfare (ATF). This step has been taken to relieve the aviation industry, which is affected by the high cost of fuel. So far this rate was 14 per cent on ATF. The revenue department under the Ministry of Finance issued the notification and said that the deduction of duty will be effective from October 11.
Significantly, the price of jet fuel has reached the highest level since January 2014 after the fall in the price of crude oil in the international market and the fall in value of the rupee. At present, the cost of aircraft fuel in Delhi is 74,567 rupees per kilo liter (74.56 liters) and in Mumbai Rs 74,177 per kiloliter. The price of ATF has increased 9.5 percent since July. It has been growing since July last year. Except July 2018, it increased every month. In July last year, the plane fuel was Rs 47,013 per kl. After that, it has increased 58.6%.
Last week, the government cut excise duty by Rs 1.50 per liter on petrol and diesel. At the same time, the government asked the oil companies to cut one rupee a liter. At the same time BJP-ruled states also reduced the VAT and gave relief of Rs 2.5 per liter. With this, customers in these states get relief of Rs. 5.00 per liter on petrol and diesel.