By Admin 
Aviation Turbine Fuel Prices Increased: New prices of Aviation Turbine Fuel (ATF), the fuel used in airplanes, will be applicable from April 1 and this time the signs are not looking good. The rising international prices of crude oil have already indicated that the pressure is going to increase. Its prices are updated only on one date every month, so at the beginning of the war last month on March 1, the effect of the war was not visible, but now the situation is different.
Even today, due to the ongoing tension in West Asia, the prices of crude oil in the international market are higher than before and the rupee is also weak. Both together are creating an environment for making ATF expensive. If ATF becomes expensive then its direct effect will be visible on your ticket. The cost of airlines will increase and ultimately the common passenger will have to bear the burden. Be it planning a vacation, taking a flight in an emergency or having to go somewhere suddenly, everyone’s budget can get spoiled.
If ATF is expensive then ticket is expensive, how does this mathematics work?
On the 1st of every month, IOC, BPCL and HPCL together decide the new prices of ATF. The base price, central excise duty, state VAT and dealer commission is the price that the airlines have to pay and 30 to 40 percent of the total operating expenses of any airline is ATF alone, that is, if ATF becomes even a little expensive, the cost of the airline directly increases and that burden ultimately falls on the passenger’s ticket.
State VAT is the real problem
The biggest problem in the price of ATF is the VAT i.e. sales tax of the states. In Maharashtra, there is around 25 percent VAT on ATF, in Delhi it is above 20 percent, whereas Andhra Pradesh and Telangana reduced VAT to 1 percent and the result was that aviation grew rapidly there. The same ATF is expensive in Mumbai and cheap in Hyderabad only because of the state tax, the Center cannot intervene directly even if it wants to, this is the problem.
ATF has not yet come under the purview of GST. Like petrol-diesel, it is also in the hands of the states. That is why even if the central government wants, it cannot decide VAT directly and can only appeal. This is the reason why the Aviation Minister is preparing to write a letter to the Chief Ministers of the states in which there will be a request to reduce VAT on ATF. A separate letter will also be sent to the finance departments of the states.
Airport charges will also be reviewed
The Aviation Ministry says that it is exploring options keeping in mind the airlines, passengers and airports. In this series, a meeting will also be held with airport operators in which various charges to be collected from passengers will be reviewed and the objective is that if fuel is expensive on one side, relief can be given on the other side.