On a day when jet fuel experienced its steepest-ever 18% surge, IndiGo CEO Ronojoy Dutta said the need to get it under the GST is “now more than ever.”
Jet fuel (ATF) was increased in the state capital by 17,135.63 per kl, or 18.3%, to ₹1,10,666.29 per kl, according to a price release from state-owned fuel traders. Fuel costs have risen every two weeks since early 2022 and Wednesday marked the sixth straight rise this year, pushing costs up 50% over the period
“This situation is having a negative impact on us as ATF accounts for over 45% of our operating costs. We have been in talks with the government to bring ATF under GST as it brings the benefit of the pre-tax credit. We believe such action is needed now more than ever to offset this increase in costs and make flying profitable for airlines and affordable for consumers,” Mr Dutta said in a press statement.
The airline industry has been calling for ATF to be placed under the GST for the past five years, and Finance Minister Nirmala Sitharaman said last month she would raise the issue at the next GST Council meeting.
Earlier this week, Civil Aviation Minister Jyotiraditya Scindia said in Parliament that the cost of ATF has increased 4.5 times since 2020. He said 12 states had reduced sales taxes on ATF from 25% to 30% to 1% to 4% after his demands.