Jet Fuel under GST: The Ministry of Civil Aviation is also working towards bringing Jet Puel within the purview of GST. He has raised this issue with the Finance Ministry.
Before the assembly election (2021), there has been a sudden break on the price of petrol and diesel. There has been no change in its price for the last 13 days. Although its rate is skyrocketing. Petrol has crossed Rs 95 and diesel has reached close to 90 in most cities. In some cities, petrol is beyond 100. Fuel consumption has declined for the second consecutive month in February due to a record price jump. The demand for fuel has come down to its lowest level since September.
Amid the historic rise in the price, petrol-diesel is now being considered to be brought under the purview of GST. Many economic experts, including Reserve Bank Governor Shaktikanta Das, have advised to bring it under the purview of GST. It is believed that this will keep the price uniform across the country and it will also be a profitable step for the public. According to a report, the Ministry of Civil Aviation is also working towards bringing Jet Puel within the purview of GST. He has raised this issue with the Finance Ministry. A senior ministry official said this on Friday. Addressing a program, Civil Aviation Secretary Pradeep Singh Kharola said that the ministry has also taken several steps to utilize the vast airspace of the country in the best way possible. He said that this would help domestic airlines to reduce costs along with international flights passing through India’s aviation sector.
ATF costs more than 50 percent
Aviation Turbine Fuel (ATF) is the cost of aircraft fuel in the operations of airline companies from 45 to 55 percent. This cost in India is the highest compared to other countries of the world. This is the reason that the aviation industry has long been demanding that the ATF be brought under the purview of GST. In this regard, Kharola said, ‘We are working in this direction (Bring ATF under GST) and the matter has been taken up before the Ministry of Finance. This proposal will be put before the GST Council. In such a situation, if the price will be reduced by bringing it under the purview of GSG, then its benefit will also be passed on to the customers in the form of rent.
Operational cost will decrease for airline
Kharola said that due to these measures, both the freight and passenger transport airlines will be able to get maximum benefit in the fixed travel and reduce the cost. Kharola said, ‘A large part of the economic sector has gone through a period of crisis and this is true in the case of aviation sector too. But at least about the Indian aviation sector, I can say that it has faced many challenges but still it is going on and air freight transport has been a major contributor to it.
Petroleum products consumption decreased by about 5 percent in February
According to the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas, the total consumption of petroleum products decreased by 4.9 per cent to 1.72 million tonnes in February. The demand for diesel, the most consumed fuel in the country, fell by 8.5 per cent to 65.5 lakh tonnes in February. At the same time, the consumption of petrol has come down by 6.5 percent to 24 lakh tons. There was no change in the sale of naphtha, but the demand for bitumen used in road construction fell by 11 per cent.
LPG sales up 7.6 percent
During this period, the sale of LPG LPG increased by 7.6 percent. In a monthly report released on Thursday by the crude oil supplier group OPEC, it is estimated that in 2021, India’s crude oil demand will increase by 13.6 per cent to 49.9 million barrels per day. In 2020, India’s oil demand fell by 10.54 per cent to 44 lakh barrels per day. The report said that with the encouraging macroeconomic indicators, the reduction in the number of cases of COVID-19 across the country shows a good scenario for India’s crude oil demand in 2021.