Government allowed Domestic Air Carriers to Directly import Aviation Turbine Fuel

Director General of Foreign Trade [DGFT] on 22 February 2012 issued a formal notification allowing the domestic airlines to directly import Aviation Turbine Fuel [ATF]. At present only state trading enterprises of the government are allowed to import ATF.

The government’s decision to allow domestic airlines to import ATF on their own would help the carriers to bring down their operating cost as the tax imposed on ATF itself put a huge economic burden on the Airlines operating in India.

The tax levied on ATF by different states varies from 4% to above 32% across the country. This makes the cost of ATF in India 50% more expensive than other developing economies.  Several airlines who are suffering a huge loss due to the increased price of fuel had been clamouring for permission to import ATF directly which has a substantial share in operating an airline company in India.