ATF, a cash cow for states

New Delhi: Aviation turbine fuel (ATF) consumption has increased significantly over the past year, contributing greatly to the revenue of state governments. This follows the aviation boom that the country is witnessing at present.
ATF consumption has gone up from 3.6 million kilo litre (mkl) in 2004-05 to 3.8 mkl in 2005-06. Taking the average sales tax on ATF across the states as Rs 8389 per kl, sales tax on fuel contributed around Rs 3,272 crore to the states’ revenue in ’05-06, an increase of 8.33% over the previous year.
And keeping pace with the rise in consumption, the ATF prices have increased from Rs 34,099 per kilo litre in January 2006, in Delhi, to Rs 40,408 per kilo litre in June, registering an average increase of Rs 1,051 a month. The trend was similar across the metros with the fuel prices witnessing an average monthly increase of Rs 1,107 a kilo litre.
17/06/06 Atreyee Dev Roy/Financial Express

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