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Jet fuel in India costlier than Singapore, Hong Kong

August 21, 2008 14:10 IST

Airlines in India pay the most for fuel when compared with other Asia Pacific hubs like Singapore, Hong Kong and Colombo, mainly on account of higher tax rates.

Aviation Turbine Fuel or jet fuel in Delhi, the city that houses the nation's second busiest airport, costs $1,291 per kilolitre while the same in Singapore is sold at $1,067 per kl. It costs $1,100 per kl in Hong Kong and $1,113 in Colombo.

For airlines, refueling cost in Delhi is 21.73 per cent higher than that in Singapore, according to a report by the ministry of petroleum and natural gas.

Similarly, airlines in India pay 14.82 per cent and 13.87 per cent more than what those in Colombo and Hong Kong pay respectively.

Over the past four months, cost of jet fuel in Delhi has risen from $1,023 per kl in April to $1,291 per kl in August, a trend that was also followed in other regional aviation hubs.

Airlines in India pay an eight per cent excise duty, besides sales tax that varies from 20 per cent (in Delhi) to 35 per cent.

The frenzied upswing in international crude oil prices, which touched a record high of $147 per barrel last month made public sector oil firms like Indian Oil Corp hike ATF prices on July 31 by 2.8 per cent.

The fuel, which prior to the hike cost Rs 69,097.19 per kl, costs Rs 1,931.07 per kl more for domestic airlines from August 1 at Rs 71,028.26 per kl in Delhi.

ATF accounts for 35 per cent of the total airline expenses.

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