New Delhi, July 1: Government oil marketing companies (OMCs) have reduced the price of Aviation Turbine Fuel (ATF) by ₹5 per liter, effective from Wednesday. This decrease is attributed to a reduction in international crude oil prices, following a decrease in tensions in West Asia.
According to the latest notification, the price of ATF in Delhi has now dropped to approximately ₹110 per liter, effective from July 1.
This recent price cut is expected to lower the operating costs for domestic airlines. However, the actual benefit will depend on each airline’s fuel purchasing strategies and hedging practices.
Peace talks regarding the conflict between the U.S. and Iran have eased tensions in the Middle East, leading to a significant drop in crude oil prices. Brent crude futures have fallen to $73.21 per barrel, while WTI crude futures have dipped below $70 per barrel, now at $69.73 per barrel.
Additionally, the central government has amended the windfall tax on petroleum product exports. The tax on petrol exports has been increased, while the taxes on diesel and ATF exports have been reduced.
The special additional excise duty (SAED) on petrol exports has risen to ₹4 per liter from the previous ₹1.5 per liter. During the same period, the duty on diesel exports has been lowered to ₹8.5 per liter from ₹14 per liter, and the ATF export duty has been cut to ₹7.5 per liter from ₹12.5 per liter. However, there have been no changes to the excise duties on petrol and diesel supplied domestically.
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