The rising cost of petrol has been a significant concern for consumers. The common comparison between driving and flying overlooks the crucial factor of fuel consumption, which contributes to higher aviation expenses. However, a surprising detail is that the fuel used for airplanes, known as Aviation Turbine Fuel (ATF), is often less expensive than the petrol used in your car.
ATF is the specific fuel used in jet-engine aircraft and helicopters. It may appear similar to petrol or diesel, and can even be colorless, but its chemical makeup and properties are different. Primarily, it is a kerosene-based fuel, tailored through refining for the demands of jet engines. Additives within the fuel prevent it from freezing at high altitudes and low temperatures, while also ensuring consistent combustion within the engine.
Comparing the prices, jet fuel is currently priced lower than petrol. For example, Indian Oil’s jet fuel is priced around Rs 92 per liter in Delhi, about Rs 95.16 per liter in Kolkata, and around Rs 86 per liter in Mumbai. In contrast, the price of petrol is Rs 94.77 per liter in Delhi, Rs 103.50 per liter in Mumbai, and Rs 105.41 per liter in Kolkata.
The differing costs arise mainly from the tax structures applied. Just as with petrol and diesel, ATF is subject to taxes from both the central and state governments. However, different VAT rates in each state lead to price differences. The central government imposes excise duty on ATF, while state governments levy VAT. Despite price variations across states, the lower taxation on ATF compared to petrol contributes to its affordability for airlines. The goal of the lower tax rate is to help keep airline operating costs manageable.