Petroleum Ministry to consider rationalising ATF prices
The government on Tuesday said it would consider rationalising the prices of aviation turbine fuel (ATF), spiralling rates of which have hit the bottomline of airlines and pinched the wallet of air travellers.
By PTI |
NEW DELHI: The government on Tuesday said it would consider rationalising the prices of aviation turbine fuel (ATF), spiralling rates of which have hit the bottomline of airlines and pinched the wallet of air travellers.
"They (Petroleum Ministry) are trying to work towards some solution. But there is no immediate decision," Civil Aviation Minister Praful Patel told reporters after a meeting with his Petroleum counterpart Murli Deora here.
Deora refused to commit anything at this point of time, saying: "It will take some time."
At the meeting, the Civil Aviation Minister and his top officials briefed their Petroleum Ministry counterparts on the financial losses being faced by the airlines on account of the rising ATF prices.
"In view of the financial health of the aviation industry, we briefed the Petroleum Minister on how to safeguard the aviation industry's interests by rationalising the ATF prices.
"The (Petroleum) Ministry has assured us of all possible efforts in this direction. There is no immediate decision. Our own carriers like Air India and Jet Airways are at a disadvantage compared with other international airlines," Patel said.
The fuel cost accounts for over 40 per cent of the total operating cost of all major carriers, which have earlier this month raised the fuel surcharge on tickets to Rs 1,300.
In September last year, this surcharge stood at Rs 750. It rose to Rs 900 this May, Rs 950 in July and Rs 1,100 in August as global ATF price touched an all-time high of 96 dollars.
"They (Petroleum Ministry) are trying to work towards some solution. But there is no immediate decision," Civil Aviation Minister Praful Patel told reporters after a meeting with his Petroleum counterpart Murli Deora here.
Deora refused to commit anything at this point of time, saying: "It will take some time."
At the meeting, the Civil Aviation Minister and his top officials briefed their Petroleum Ministry counterparts on the financial losses being faced by the airlines on account of the rising ATF prices.
"In view of the financial health of the aviation industry, we briefed the Petroleum Minister on how to safeguard the aviation industry's interests by rationalising the ATF prices.
"The (Petroleum) Ministry has assured us of all possible efforts in this direction. There is no immediate decision. Our own carriers like Air India and Jet Airways are at a disadvantage compared with other international airlines," Patel said.
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The fuel cost accounts for over 40 per cent of the total operating cost of all major carriers, which have earlier this month raised the fuel surcharge on tickets to Rs 1,300.
In September last year, this surcharge stood at Rs 750. It rose to Rs 900 this May, Rs 950 in July and Rs 1,100 in August as global ATF price touched an all-time high of 96 dollars.
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