New Delhi:

Jet fuel or ATF price on Sunday was hiked by 5 per cent — the fourth straight monthly increase since July, and commercial cooking gas (LPG) rates were raised by a steep Rs 209 per 19-kg cylinder, in line with the firming up seen in international benchmarks.

However, the price of domestic LPG – the one used in household kitchens for cooking purposes – remained unchanged at Rs 903 per 14.2-kg cylinder.

Aviation turbine fuel (ATF) price was increased by Rs 5,779.84 per kilolitre, or 5.1 per cent, in the national capital to Rs 118,199.17 per kl from Rs 112,419.33, according to a price notification of state-owned fuel retailers.

The increase comes on back of the steepest-ever 14.1 per cent increase (Rs 13,911.07 per kl) effected on September 1, and a 8.5 per cent or Rs 7,728.38 per kl increase on August 1.

The fourth straight increase in prices of jet fuel, which makes up for 40 per cent of an airline’s operating cost, will increase the burden on already financially strained airlines.

On July 1, ATF price had gone up by 1.65 per cent or Rs 1,476.79 per kl. In four increases, ATF prices have gone up by a record Rs 29,391.08 per kl.

Alongside, oil firms raised the price of commercial LPG – the one used in establishments such as hotels and restaurants – by Rs 209.

A 19-kg commercial LPG cylinder will now cost Rs 1,731.50 in the national capital and Rs 1,684 in Mumbai.

The increase reserves most of the Rs 157.5 per cylinder cut in commercial LPG price effected on September 1 and Rs 100 cut effected from August 1.

Saudi contract price (CP), the benchmark used for pricing of LPG, has increased following a firming up trend in crude oil prices witnessed in last few weeks over supply concerns.

Oil companies, which had on August 30, cut domestic LPG rates by Rs 200 per 14.2-kg cylinder, did not change the price of 14.2-kg cylinders.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st of every month based on the average international price in the previous month.

Petrol and diesel prices continued to remain on freeze for a record 18th month in a row. Petrol costs Rs 96.72 per litre in the national capital and diesel comes for Rs 89.62 per litre.

State-owned fuel retailers are supposed to revise petrol and diesel prices daily, based on a 15-day rolling average of benchmark international fuel prices, but they haven’t done that since April 6, 2022.

Prices were last changed on May 22, when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.

The SAED or duty on export of diesel will be cut to ₹5 per litre, from ₹5.50 per litre currently. Image for representation purpose only. File
| Photo Credit: AP

The government on Friday hiked special additional excise duty (SAED) on crude petroleum to ₹12,100 per tonne with effect from September 30.

In the last fortnightly review on September 15, windfall tax on domestically produced crude oil was set at ₹10,000 per tonne.

Besides, the SAED or duty on export of diesel will be cut to ₹5 per litre, from ₹5.50 per litre currently.

The duty on jet fuel or Aviation Turbine Fuel (ATF) will be reduced to ₹2.5 per litre effective Saturday, from ₹3.5 per litre currently.

The SAED on petrol will continue at nil.

India first imposed windfall profit taxes on July 1, 2022. 

Image used for representative purpose only.
| Photo Credit: AP

The government on Friday hiked special additional excise duty (SAED) on crude petroleum to ₹10,000 per tonne with effect from September 16.

In the last fortnightly review on September 1, windfall tax on domestically produced crude oil was set at ₹6,700/tonne. Besides, the SAED or duty on export of diesel will be cut to ₹5.50/litre, from ₹6/litre currently.

The duty on jet fuel or ATF will be reduced to ₹3.5/litre effective Saturday, from ₹4/litre currently.

SAED on petrol will continue at nil. India first imposed windfall profit taxes on July 1, 2022. 

Representational image of crude oil barrels ready to be transported.
| Photo Credit: AP

The government has cut the windfall profit tax on crude oil produced in the country while the levy on exports of diesel and aviation turbine fuel (ATF) has been hiked, an official notification said.

The tax, levied in the form of special additional excise duty or SAED, on domestically produced crude oil was reduced to ₹6,700 per tonne from ₹7,100 a tonne.

SAED on the export of diesel was increased to ₹6 per litre from ₹5.50 a litre and on jet fuel or ATF to ₹4 per litre from ₹2, the notification said.

SAED on export of petrol will continue to be zero.

The new tax rates came into effect from Saturday, the order dated September 1, said.

India first imposed windfall profit taxes on July 1 last year, joining a growing number of nations that tax supernormal profits of energy companies. At that time, export duties of ₹6 per litre ($12 per barrel) each were levied on petrol and ATF and ₹13 a litre ($26 a barrel) on diesel.

A ₹23,250 per tonne ($40 per barrel) windfall profit tax on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) was also levied.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.

A windfall tax is levied on domestic crude oil if rates of the global benchmark rise above $75 per barrel. Export of diesel, ATF and petrol attract the levy if product cracks (or margins) rise above $20 per barrel.

Product cracks or margins are the difference between crude oil (raw material) and finished petroleum products.

International crude oil prices averaged $86.43 per barrel in August, up from $80.37 in the preceding month and $74.93 a barrel in June.

The levy on domestic crude oil dropped to nil in the first half of April as international crude oil prices fell but was back in the second half in step with a rise in rates.

Levy on diesel became nil in April but the levy was brought back in August. Levy on ATF became nil in March and was brought back in second half of August.

The export tax on petrol was scrapped in the very first review.

Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel and aviation turbine fuel (ATF).

Reliance Industries Ltd, which operates the world’s largest single-location oil refinery complex at Jamnagar in Gujarat, and Rosneft-backed Nayara Energy are primary exporters of fuel in the country.