Jet fuel prices may drop 10%

The move to treat jet fuel supplies to long-distance flights of global carriers as exports would enable oil firms offer fuel at competitive rates.
It will help them claim duty drawback or rebate on duty chargeable on imported crude oil used in the manufacture of such fuel, which would translate into lowering of fuel prices. Centre for Asia Pacific Aviation (CAPA) chief executive officer Kapil Kaul told FE, “The jet fuel bill of international carriers are expected to come down by 10%. This will increase their competition in Indian operations. It will also benefit Indian carriers like Air-India, Indian and Jet Airways to cut down their fuel bill in international operations.” Currently, most airlines replenish supplies or refuel in Thailand, Malaysia or Singapore.
Since these supplies were not treated as exports in India and suppliers could not obtain the duty neutralisation benefits available to other export products, the store supplies from India became largely uncompetitive.
08/04/06 Financial Express

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