Plans to bring ATF under PNG regulatory board: Ajit Singh, Civil Aviation Minister

NEW DELHI: Aiming to bring transparency in pricing of jet fuel, Civil Aviation Minister Ajit Singh today said plans are afoot to bring Air Turbine Fuel ( ATF) under the Petroleum and Natural Gas Regulatory Board (PNGRB).

The move will help airlines know about pricing methods and the changes in it, he told reporters on the sidelines of a function here.

"We are planning to bring ATF under the regulator, so that there is some transparency on how it is priced," he said.

Singh was replying to a question on steps taken by government to control the ATF in view of high cost incurred by the airlines sector.

"There are only three companies that totally control the market and when it comes under the regulator, we will come to know why it (ATF) is priced and how it is changed," he said.

Earlier addressing the FICCI 85th Annual General Meeting here, Singh said 50 per cent of the operating cost in the aviation sector is in the form of jet fuel.

"Aviation sector is under stress, specially in India there is lot of financial stress. No bank is willing to expose themselves for the aviation sector, not even for the working capital. The cost has gone up tremendously, because 50 per cent of operational cost in aviation sector is ATF and ATF prices have been going up," he said.

Singh had recently met oil minister M Veerappa Moily seeking relief on issues related to the high cost of aviation fuel.