Aviation Turbine Fuel (ATF) and related issues

1. Which of the following statement is incorrect in context of ATF in India?
   1. It is a kerosene based fuel.
   2. ATF Pricing is under market based system.
   3. ATF Pricing is based on the principle of import-parity.
   4. ATF is imported from OPEC countries as finished product.
       
2. What is/are the issues faced by the Indian Airline industry in context of ATF?
   1. Loss of competitiveness vis-a-vis international counterparts due to high price of ATF.
   2. Cartelization of OMCs through monopoly pricing.
   3. Price gap in ATF supplies for domestic and international operations.
   4. All of the above.
       
3. Economists argue that the taxes levied on ATF are irrational and lead to loss of competitiveness for domestic players. Which of the following taxes is not levied on the carriers for international operations?
   1. Sales tax imposed by states.
   2. Custom and excise duties.
   3. VAT at special rate.
   4. Throughput charges

Answers

1. d
2. d
3. a

References

http://www.spsairbuz.com/story.asp?Article=454