TLI Staff
New Delhi: Commuters paying through their nose for diesel and petrol may consider a helicopter ride to their workplaces as aviation turbine fuel (ATF) or jetfuel is far cheaper.
Even as petrol prices have been inching closer to Rs 100 a litre in many cities, a litre of jetfuel costs just Rs 55.73 in Delhi.
According to latest price published by fuel retailer Indian Oil on its website, a litre of jetfuel in Mumbai costs even less and is priced at Rs 53.85. In Chennai, the ATF price is ruling at Rs 56.87.
The government has refused to cut taxes on diesel and petrol despite simmering anger against it. Truckers and traders have protested against the high fuel price by announcing nationwide shotdown. Opposition parties often take swipe on the government but have so far failed to mount enough pressure for downward revision in taxes.
Imposing high taxes on diesel and petrol which are used by common man while keeping the duties low on aviation fuel defies the basic taxation policy which requires rich to pay more than those relatively less well-off.
Speaking to Top Lead India, a top economist said that airline industry had suffered huge blow during pandemic and hence government could have consciously decided to not raise taxes on jetfuel. Also, it has set an upper limit for air tickets and hence airlines may demand its removal if government made fuel prices costlier for them.
It is a fact that airline industry is one of the worst-affected from pandemic but so are many other sectors such as hotels, restaurants, real estate and MSMEs.
The government has argued that rise in diesel and petrol prices are in line with increase in international crude price trends, experts have called its bluff saying that it prices had skyrocketed due to high excise duty levied by the Centre.
Faced with revenue shortfall due to less economic activities, government has been using diesel and petrol as cash cow and raised duties. Even when global crude prices crashed in the past, the government raised excise duty on diesel and petrol refusing to pass on the benefits to consumers.
Diesel, petrol prices in India higher than financially broke Pakistan, military coup-hit Burma