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Petrol Rs 10 up on jet fuel

Even after a Rs 1.48 hike in aviation fuel costs, it still remains at least Rs 10 cheaper than petrol.

business Updated: Sep 16, 2011 23:56 IST

Even after a Rs 1.48 hike in aviation fuel costs, it still remains at least Rs 10 cheaper than petrol.

A litre of petrol now costs Rs 66.84 in Delhi. In Mumbai, one has to shell out Rs 71.92. Airlines, in comparison, would pay Rs 58.45 for every litre of air turbine fuel (ATF) instead of the earlier Rs 56.97 per litre in Delhi and Mumbai.

While the comparison may be notional, India is the only country where petrol is costlier than ATF. The reason is the skewed duty and tax structure on petroleum products.

On every litre of petrol, you pay nearly 40% as taxes and duties.

In Delhi, for example, of the Rs 66.84 that a litre of petrol costs, almost Rs 26 goes to the government as taxes and duties - Rs 14.78 as excise duty and education cess to the Centre and Rs 11.14 to the state government as sales tax.

Another Rs 1.50 is the commission paid to the petrol pump.

In comparison, customs or excise duty on ATF were removed following the 2008 slowdown.

Jet Airways, the largest passenger airline, meanwhile, increased the fuel surcharge on all its flights by Rs 200, which will reflect on the ticket prices from Saturday.

Air India and Kingfisher Airlines are thinking of following suit.

ATF remains the single largest element contributing to airline costs, accounting for 40% of the operating cost of Indian carriers.