The Union government may ask airlines to review surcharges and surcharges if fuel prices remain stable over a longer period, Civil Aviation Minister K Ram Mohan Naidu said on Thursday.
Talking to reporters, Naidu said the Center is closely monitoring Aviation Turbine Fuel (ATF) prices and is in discussions with airlines to assess whether the recent decline in prices is sustainable.
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The government currently reviews ATF prices every two weeks, based on the movement of global crude oil prices. In addition, it has also created $Rs 10,000 crore fare stabilization fund to support airlines in times of distress due to West Asia crisis.
“Secondly, since we are now seeing prices falling, we still have to see whether this is a long-term decline or whether it is sudden, and we are talking to airlines about this,” the minister said.
He said that the past few months have been important for the aviation sector and any decision on fare-related duties will depend on the stability of fuel prices.
“The last four months have been very important for airlines… Once we realize that price stability will continue for a long time, we will talk to them and work towards bringing down the excess charges or surcharges that we are seeing now,” Naidu told ANI.
Highlighting the government’s efforts to address concerns over fuel costs, the minister added, “In the case of ATF, we have also provided a price stabilization fund of $10,000 crores.”
“So you can see how important it is for the Indian government to study this issue at the moment,” he noted.
Amid the ongoing geopolitical crisis, the government has capped ATF prices for scheduled domestic operators, reduced airport fees, and expanded support under the Emergency Credit Linkage Scheme.
