Indian airline industry calls for rationalisation of jet fuel taxes

21 Mar 2022 CW Team

Domestic airlines in India have called for rationalisation of jet fuel taxes, in a move to combat the spike in fuel prices. High crude oil prices prompted Oil Marketing Companies (OMCs) to raise Aviation turbine fuel (ATF) prices to over Rs 1 lakh per kilolitre (kl).

The price of jet fuel in the national capital was increased by 18.32% to Rs 1,10,666.29 per kilolitre (kl) from Rs 93,530.66 per kl.

The price was increased to Rs 1,14,979.70, Rs 1,09,119.83, and Rs 1,14,133.73 per kl in the other metro cities of Kolkata, Mumbai, and Chennai, respectively.

The increase occurred as crude oil prices remained high due to the Russia-Ukraine crisis. Jet fuel prices are updated every two weeks by fuel retailers.

Due to the ongoing conflict in Europe, crude oil prices have risen to a seven-year high nearing $140 per barrel, according to Ronojoy Dutta, Whole-time Director and Chief Executive Officer of IndiGo.This has resulted in an ATF price increase of over 50% since January 2022, including the current increase of 18%.

Such measures, according to Dutta, are needed now more than ever to offset the cost increase and make flying viable for airlines as well as affordable for consumers.

Domestic ATF prices in India are derived from international fuel prices denominated in US dollars, making ATF prices susceptible to exchange rate fluctuations. Notably, the rupee has recently depreciated against the US dollar, which has resulted in price increases. Due to high levels of taxation, ATF prices are significantly higher than international benchmarks.

The industry has been pushing for the fuel type to be included in the goods and services tax (GST), similar to how Bunker Diesel, which is used in the shipping industry, has been.

Image Source

Also read: Govt plans Rs 91k cr investment for development of airports in India

Infrastructure Urban

09 Mar 2026

Flender Inaugurates Wind Gearbox Test Rig In Chennai

Chennai, 6 March 2026: Flender has inaugurated a 13.5 MW wind turbine gearbox test rig at its Walajabad facility near Chennai, marking the installation of the largest test rig of its kind in India. The facility was inaugurated on 5 March in the presence of Andreas Evertz, CEO, Flender Group; Lars Wiegemann, Vice President – Wind Gears; and Vinod Shetty, CEO, Flender India.The test rig has been developed to support testing and validation of wind turbine gearboxes, strengthening the company’s capabilities in the renewable energy sector. The commissioning was completed within three months thr..

BMW Industries partners with IOCL for PNG supply at Bokaro plant

BMW Industries has entered into a strategic partnership with Indian Oil Corporation (IOCL) for the supply of Piped Natural Gas (PNG), reinforcing its commitment to adopting cleaner and more efficient energy sources for its operations.The agreement was signed at the Eastern Region Pipelines (ERPL) headquarters in Kolkata. The partnership is expected to support the company’s upcoming manufacturing facility in Bokaro by facilitating the use of natural gas as a primary energy source.According to the company, the adoption of PNG will help enhance operational efficiency while also contributing to ..

Bombay Realty Secures RERA for Three ICC Tower in South Mumbai

Bombay Realty, the real estate arm of Bombay Dyeing and part of the Wadia Group, has received Real Estate Regulatory Authority (RERA) certification for Three ICC – Wing A, the latest luxury residential tower at Island City Center in Mumbai’s Dadar.The RERA registration marks a key milestone in the development timeline and reinforces the company’s focus on regulatory transparency, timely project delivery, and high construction standards.Following the success of One ICC and Two ICC, the upcoming Three ICC tower represents the next phase of the Island City Center development. The project ai..