New Delhi, December 1: In a big relief to cash-strapped Indian airlines, oil companies on Saturday slashed aviation turbine fuel (ATF) prices by almost 11 per cent for December month. The price per kilolitre (kl) of jet fuel after the latest cut in Delhi, India's busiest airport, is Rs 68,050.97 in December, down from Rs 76,380 last month. In Mumbai, a kilolitre of jet fuel will cost Rs 67,979.58, down from Rs 76,013.2 last month.

Following the reduction in prices of jet fuel, airlines may cut rates on tickets of some flights. The ATF cost had been on the upswing since July last year, spiking by nearly 60 per cent since then. Last month, oil companies raised the prices of aviation turbine fuel by 5.2 per cent. Following the hike, in Delhi, a kilolitre of jet fuel was priced at Rs 76,378.8 up from Rs 72,605. The hike brought ATF price in Kolkata Rs 81,441.06 per kl - breaching the Rs 80,000-mark for the first time since July 2014. Centre Hikes Import Duty on ATF.

Meanwhile, the aviation ministry reiterated the long-standing demand to include ATF under the Goods and Services Tax (GST) regime, which could ensure a "fair price regulation".  “We have requested the finance ministry for two things — bring ATF under GST and for input tax credit for aircraft of Indian carriers being serviced abroad,” aviation secretary R N Choubey said recently.

Aviation Minister Suresh Prabhu had told news agency PTI that bringing turbine fuel under GST could bring down the operational cost by 35-40 per cent approximately. In October, the central government had reduced the excise duty on aviation turbine fuel from 14 per cent to 11 per cent. The cut was announced in the backdrop of rising crude prices, combined with the plummeting rupee, which has pushed a number of flyers into losses.

(The above story first appeared on LatestLY on Dec 01, 2018 03:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).