The government today admitted in Parliament that central and state taxes made up for more than one-third of the jet fuel price, corroborating the statement of private airlines which had threatened to go on a 'strike' over their demand for a cut in the levies.
However, the government said, it did not control the price of aviation turbine fuel (ATF) as it was a deregulated product.
The minister of state for petroleum and natural gas, Jitin Prasada, told Rajya Sabha in a written reply that the Rs 37.48 per litre retail selling price of aviation turbine fuel (ATF) in Mumbai comprised Rs 13.46 a litre in excise duty and sales tax.
The basic price of the jet fuel in Mumbai, the nation's busiest airport, was Rs 24.02 per litre. Freight and other cost add Rs 3.68 to the price while excise duty contributed Rs 2.28 a litre.
State sales tax is the biggest component, making up for one-fifth or Rs 7.50 per litre, of the retail ATF price, he said.
Sales tax was the highest in Chennai adding Rs 9.03 to the price and the lowest in Delhi where only Rs 6.05 a litre was added. In Kolkata, the state government earned Rs 8.88 per litre from jet fuel sales.
