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  • 17 January, 2021

  • 12 Min Read

Aviation Turbine Fuel (ATF) prices raised for the 4th time

Aviation Turbine Fuel (ATF) prices raised for the 4th time

What is Aviation Turbine Fuel (ATF)?

  • ATF is Kerosene-based fuel used for powering jet and turboprop engine aircraft.
  • ATF doesn’t come under the GST (Goods and Services Tax) regime.
  • States charge ~30% in sales tax on ATF on top of Excise duty of Center.

What is the news?

  • Jet fuel, or ATF, price on Saturday was hiked by 3% — the fourth increase in two months — on firming international oil prices, while petrol and diesel rates remained unchanged after hitting new highs.
  • Aviation turbine fuel (ATF) price was raised by Rs. 1,512.38 per kilolitre (kl), or 2.96%, to Rs. 52,491.16 per kl in the national capital, according to a price notification of state-owned fuel retailers.
  • This is the fourth increase in price since December 1. Rates had gone up by 7.6% (Rs. 3,288.38 per kl) on December 1, by 6.3% (Rs. 2,941.5 per kl) on December 16 and by Rs. 1,817.62 (3.69%) on January 1.
  • The increase in ATF price, which makes for close to 40% of the running cost of an airline, will put additional burden on airlines that have been struggling to return to normal business after COVID-19 lockdown had halted their operations.

Biojet Fuel

  • Biojet Fuel is made from Jatropha crop.
  • The flight Spicejet Bombardier Q400 is using Biojet fuel developed by CSIR - IIP (Indian institute of Petroleum).
  • It was 75% ATF + 25% Biojet fuel blend.
  • Biojet fuel is made from biomass resources like animal fat, used cooking oil, waste dairy fat, sewage sludge.
  • It doesn't freeze at high altitudes.
  • It has lower sulfur content.

Source: TH

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