ATF duty hike will not escalate airline fares: Official

Jet Airways. (File Photo: IANS)
Jet Airways. (File Photo: IANS)

The government had on Wednesday hiked import duty on as many as 19 products, including air conditioners, household refrigerators and washing machines, to curb the import of non-essential items to check the burgeoning current account deficit.

A senior Finance Ministry official said the list of import items on which duty was raised was done after scrutiny of essential and non-essential items, and after duly considering which items were available locally.

Among the 19 items was also aviation turbine fuel (ATF) on which the duty was raised to 5 per cent from earlier 0 per cent.

The official said that India is producing most of the ATF required and so the duty hike would not escalate airline fares.

“Of the total usage of ATF consumption of Rs 30,000 crore, imports is of only Rs 1,100 crore, which is miniscule and will not impact the ATF price,” he said.