Tag: aviation fuel

India cuts windfall tax on crude, export taxes on aviation fuel and diesel

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India has cut its windfall tax on crude oil and exports of aviation turbine fuel (ATF) and diesel, according to a government notification dated Jan. 16.

It cut its windfall tax on crude to 1,900 rupees ($23.28) per tonne from 2,100 rupees per tonne, effective Tuesday.

The government also cut export tax on ATF to 3.5 rupees per litre from 4.5 rupees per litre, and cut export tax on diesel to 5 rupees per litre from 6.5 rupees per litre, the notification said.

India, a major consumer and importer of oil, has been buying Russian crude at well below a $60 price cap agreed by the West.

The country in July imposed the windfall tax on crude oil producers and levies on exports of gasoline, diesel and aviation fuel after private refiners sought overseas markets to gain from robust refining margins, instead of selling more cheaply at home.

Also Read:India raises windfall tax on crude, diesel and aviation fuel

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Atmanirbhar Bharat takes wings as govt launches indigenous special aviation fuel AVGAS 100 LL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a new step towards Atmanirbhar Bharat, the Narendra Modi government on Monday launched AVGAS 100 LL, a special aviation fuel meant for piston engine aircraft and unmanned ariel vehicles.

Currently, India is importing AVGAS 100 LL from European countries. The domestic production of AVGAS 100 LL, by Indian Oil Corporation Ltd at its Gujarat refinery, will make flying training more affordable in India.

Addressing the launch of AVGAS 100 LL on September 26, Minister of Petroleum and Natural Gas & Housing and Urban Affairs Hardeep Singh Puri said, “We are undergoing a remarkable transformation which is almost revolutionary. We are reducing dependence on imported fuels by promoting biofuel blending, green hydrogen and introduction of electric vehicles.”

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The minister said the launch of indigenous AVGAS 100 LL is important to serve the needs of the thriving aviation industry, with an increase in footfall at airports, a rise in the number of aircraft, and Flying Training Organisations (FTOs) for pilot training in future.

Minister of State for Civil Aviation and Road Transport and Highways Gen (Retd) Vijay Kumar Singh said under the prime minister’s Atmanirbhar Bharat vision, IOCL has come up with AV Gas 100 fuel, which was imported so far at a huge cost.

“It will ensure that all our flight schools and all other smaller aircraft that use AV Gas 100 LL are able to buy this from indigenous sources and save money. It will make a huge difference to us in terms of exporting it to areas and countries which need AV Gas 100 LL fuel,” he added.

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Chairman of Indian Oil Shrikant Madhav Vaidya said the company is proud to introduce this specialised fuel by leveraging our refining strength and in-house expertise. In fact, the indigenous fuel is superior compared to the imported grades.

“AV Gas market is expected to grow from the current $1.92 billion to $2.71 billion by 2029. We plan to set up a new facility soon to target export opportunities, besides catering to the domestic demand,” he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Aviation fuel price hiked by 2 percent; airfares expected to go up

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Aviation turbine fuel (ATF) price was increased by 2 percent or Rs 2,258.54 per kilolitre to an all-time high of Rs 1,12,924.83 per kilolitre in the national capital. While prices in Kolkata, Mumbai, and Chennai rose to Rs 1,17,353.71, Rs. 1,11,690.61 and Rs. 116,583.71 per kilolitre, respectively. This is the seventh hike since January 2022 amid a surge in global energy prices.

ATF prices are revised on every 1st and 16th of the month and differ across states because of varying value-added taxes. The recent hike comes after the steepest ever hike of 18.3 percent (Rs 17,135.63 per kilolitre) on March 16. Some airlines had then indicated a hike in airfare.

The cause of the hike is the continuous climb in global energy prices amid the Ukraine crisis and supply concerns. Brent crude was trading at $105 on Friday which is up by 65 percent on an annual basis.

Also read: IndiGo hikes salaries of pilots by 8% from April 1

Airlines have been urging the government to bring jet fuel under the ambit of the goods and services tax as it will provide airlines relief and the benefit of input tax credit. “The high taxes on jet fuel will need to be relooked,” a senior airline official told Livemint, requesting anonymity.

However, airlines may find it difficult to pass on the entire cost of the hike to passengers without impacting demand. The positive is that so far, the market has not seen a major impact despite high airfares, the official added.

Jet fuel makes up 30-40 percent of the cost of running an airline in India and these price hikes will further crimp profit margins of airlines which have already suffered huge losses over the last few quarters during the pandemic.

However, domestic air traffic is witnessing a surge in demand in recent weeks with a decline in active cases of Covid in the country.

Also read: SpiceJet to hike salary by at least 10% from April 1

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s air passenger traffic down 43% MoM in January: DGCA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Air passenger traffic in the country stood at 64.08 lakh in January, down 17 percent on a year-on-year basis, data from aviation regulator Directorate General of Civil Aviation (DGCA) showed. The air passenger traffic was down 43 percent compared with December 2021.

The impact of the Omicron variant of COVID-19 on demand is visible as capacity utilisation fell for all domestic airlines in January.

The passenger load factor (PLF) — a key metric for airlines — came down to 66.6 percent for IndiGo in January from 80.2 percent in the previous month. For SpiceJet, it was at 73.4 percent in January, as against 86 percent in December.

The PLF in January was at 60.6 percent for Air India, 60.5 percent for AirAsia India, 66.7 percent for GoFIRST and 61.6 percent for Vistara.

Also Read: IndiGo’s first sustainable aviation fuel flight lands in Delhi; all you need to know about the green fuel

IndiGo remained the largest Indian airline, with 55.5 percent market share in January, followed by SpiceJet (10.6 percent), Air India (10.2 percent) , Vistara (7.5 percent) and AirAsia India (9.9 percent). The combined market share of airlines under the Tata Group umbrella is estimated around more than 22 percent.

Also Read: Rakesh Jhunjhunwala investing $50 million in Akasa Air, says he’s got a game plan for aviation sector

In terms of on-time performance, GoFIRST was the most punctual airline in January, with an on-time performance of 94.5 percent.

Watch the accompanying video of CNBC-TV18’s Anu Sharma for more details.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Govt encouraging EVs but will not stop registration of ICE vehicles, says Gadkari

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government is encouraging the adoption of electric vehicles and the use of alternative fuels like ethanol, bio-LNG, green hydrogen, but it will not stop the registration of internal combustion engine (ICE) vehicles, Union Minister Nitin Gadkari said on Monday. Addressing virtually an event organised by industry body Indian Chamber of Commerce (ICC), Gadkari further said he is also trying to encourage the use of 50 percent ethanol in aviation fuel.

“We are encouraging (adoption of) electric vehicles (EVs), and (use) of alternative fuels like ethanol, bio-LNG, green hydrogen…(But) we are not going to stop anything (ICE vehicles),” he said. The road transport and highways minister noted that the sale of EVs has increased as people are giving good response.

“I feel that we don’t need to make anything (ICE vehicles) mandatory,” Gadkari added. He pointed out that 250 startups are working on e-vehicles and this will reduce the cost of EVs. Noting that green hydrogen is the future, he said. “I am going to buy a car next month, which will run on hydrogen.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Spicejet among 60 cos committed to take global sustainable aviation fuel supply to 10 pc by 2030

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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At least 60 companies globally, including Spicejet and Bangalore airport from India, have committed to accelerate their efforts to take the supply and use of sustainable aviation fuel to 10 percent of global jet aviation fuel supply by 2030, the World Economic Forum (WEF) said on Thursday. Releasing a ‘2030 Ambition Statement’, the WEF said carbon-free energy is in sight in some sectors but progress on abating carbon emissions in the aviation sector has been slower.

Signatory companies to the Statement represent a global group of airlines, airports, fuel suppliers and other industry stakeholders who are making a mission-critical commitment on the path to net-zero emissions by 2050. The World Economic Forum’s Clean Skies for Tomorrow Coalition whose mission is to accelerate the deployment of sustainable aviation fuels (SAF) has achieved a milestone on the path to net-zero emissions by 2050, by working together to power global aviation with 10 percent SAF by 2030, it added.

As aviation remains a “hard to abate” sector in reducing Greenhouse Gas (GHG) emissions, strong climate action from the industry is particularly important as travel begins to return to pre-pandemic levels, it said. The 60 organisations who have signed the 2030 Ambition Statement include Accenture, ACME, Airbus, Airports Council International, American Airlines, Bangalore International Airport Limited (BIAL), Biodiesel Association of India (BDAI), Boeing, bp, British Airways, Cathay Pacific Airways and Council on Energy, Environment and Water (CEEW).

These also include Delta Air Lines, Dubai Airports, Fraport, Heathrow Airport, Indian Institute of Petroleum, International Airlines Group, Japan Airlines, KLM Royal Dutch Airlines, oneworld alliance, Praj Industries Ltd, Punjab Renewable Energy Systems Pvt Ltd, Qatar Airways, SpiceJet, The Energy and Resources Institute (TERI), United Airlines and Virgin Atlantic. The signatory companies also include non-aviation companies that rely on corporate air travel for their business operations, demonstrating that the responsibility of decarbonizing the industry lies with all those who depend on the aviation sector.

This statement is also in full support of the UN High Level Climate Champions’ 2030 Breakthrough Outcome for aviation, one of over 30 sectoral near-term targets that are critical to halving emissions by 2030 and delivering the promise of the Paris Agreement. Synthesized from sustainable, renewable feedstocks such as municipal waste, agricultural residues and waste lipids, or developed through a power-to-liquid route SAF has already fuelled more than 250,000 commercial flights.

Difficulties, however, remain in getting SAF to scale up production due to its prohibitively high price gap with fossil-based jet fuel, resulting in a “chicken and egg” problem with supply and demand. The WEF said costs will fall if production scales up, but fuel providers are facing headwinds due to high price pressure on low SAF demand, and high risks associated with policy and investment uncertainty.

Demonstrating sufficient demand and policy certainty will be crucial to building investor confidence, hence the power of this major commitment from the leading companies in the aviation energy value chain, it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Issues with oil companies to be resolved early, says Air India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Air India on Sunday said that the issues regarding aviation fuel payments are being sorted out with the state-run oil companies and they would be resolved early.

The statement comes days after oil PSUs (public sector units) in a letter to the national carrier warned of ending fuel supplies at six major airports from October 18, if the latter did not the make the lumpsum payments as had been agreed upon.

The Air India spokesperson also said that there is no reason for the passengers to be concerned as it has taken steps to ensure there is no flight disruption.

“The issues with oil companies are being sorted out and would be resolved early. Meanwhile, Air India has taken all measures to ensure that flights are not disrupted and passengers are not inconvenienced at all. There is no reason whatsoever for any concern by esteemed Air India passengers,” the spokesperson said.

Previously also oil marketing companies (OMC) have stopped fuel supplies to the state-run airline, as it owes around Rs 5,000 crore to them.

In August, public sector OMCs stopped fuel supply to the airline at Ranchi, Mohali, Patna, Vizag, Pune and Cochin airports, following non-payment of dues.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ATF price hiked by 8.1%, still costs less than petrol, diesel

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jet fuel price was hiked Friday by a steep 8.1 per cent to its costliest level this year as international oil prices rose, state-owned oil firms said.
The price of Aviation Turbine Fuel (ATF) was hiked by Rs 4,734.15 per kilolitre, or 8.15 per cent, to Rs 62,795.12 per kl in the national capital, according to price notification issued by state-owned oil firms.

This is the first increase in prices in four-months which has pushed rates to their highest level this year.

ATF or jet fuel prices are revised on 1st of every month based on the average international rate for benchmark fuel and foreign exchange rate in the preceding month.

Prices were unchanged at the last revision on February 1. Prior to that, rates were cut by a record 14.7 per cent (Rs 9,990 per kl) on January 1 and by 10.9 percent (Rs 8,327.83 per kl) on December 1.

The two consecutive price reduction had brought ATF rates to their lowest levels in a year and had provided much-needed relief to cash-strapped airlines. But the latest round of price hike would put pressure on margins of airlines.

ATF, however, continues to be cheaper than both petrol and diesel in most parts of the country and is less expensive than even non-PDS kerosene.
A litre of petrol, used in motorcycles and cars, costs Rs 71.81 in Delhi as compared to Rs 62,795.12 per kl or Rs 62.79 per litre price for ATF. A litre of diesel, which is mostly used as fuel in trucks and buses, comes for Rs 67.12.

ATF costs less than the price charged for kerosene sold through non-PDS (public distribution system) outlets. Non-PDS kerosene in Delhi is priced at Rs 64.46 per litre.

ATF in Mumbai, home to one of the busiest airport in the country, costs Rs 62,748.70 per kl or Rs 62.74 per litre. A litre of petrol in the city costs Rs 77.44 and diesel is priced at Rs 70.31 per litre. It costs less than even non-PDS kerosene in the city which is sold at Rs 67.88 a litre.

Rates vary from city to city depending on local taxes.

Continuing its upward march, petrol price Friday was raised by 8 paise a litre and diesel rate was hiked by 12 paise.

Petrol now costs Rs 71.81 a litre in Delhi and diesel is priced at Rs 67.12.
Rates have been on the rise for the last two weeks and cumulatively prices have risen by Rs 1.48 per litre in case of petrol and Rs 1.31 a litre for diesel.
Non-PDS kerosene price was Friday hiked by 5.4 per cent to Rs 64,460.83 per kl in Delhi.

Like ATF, state-owned fuel retailers revise rates of non-PDS kerosene on 1st of every month based on average international oil rate and rupee-US dollar exchange rate in the preceding month. Petrol and diesel prices are revised on a daily basis.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jet Airways’ passenger traffic grows by 5% in December despite financial woes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Despite being severely hit due to its ongoing financial crisis amid the rising fuel prices and low yield because of increasing competition, Jet Airways’ passenger traffic grew by 5 percent in December 2018, the Directorate General of Civil Aviation’s (DGCA) data shows.

The airline has, however, not added much revenue from its highest fare bucket seats to its kitty for many of its sectors in December. The data shows that the airline had a zero percent booking, in the highest fare bucket category, for most of its flights from Kolkata, Delhi and Bengaluru.

(Source: DGCA data)

The airline’s expenses as in the second quarter of the financial year 2019, stood at Rs 2,419.97 crore as against Rs 1,525.66 crore for the same period of last year.

The woes do not end here for the airline. Jet has also been ranked the second lowest, after Air India, for on-time performance in December. Only 69.7 percent of its flights were on time in the month.

The airline has been keenly seeking a stake sale in order to keep itself aloft while struggles through massive debts. Etihad Airlines, which already holds 24 percent in the airline, has reportedly stepped in and has placed its conditions for the deal,  which includes promoter Naresh Goyal giving up on his leadership.

The data revealed by the regulatory body also shows that India’s aviation industry has maintained a robust traffic growth of 18.6 percent in 2018 despite most airlines citing high fuel cost, increasing competition, high-interest rates and depreciation in the Indian currency reasons for reporting consecutive quarterly losses.

Passengers carried by domestic airlines during the calendar year were 1389.76 lakhs as against 1171.76 lakhs during the corresponding period of the previous year, the data showed.

(With inputs from IANS)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow