Government may ask airlines to review surcharges and additional prices if crude stabilises: Civil Aviation Minister
Varanasi, June 25
The Union government may ask airlines to review surge charges and additional fares if fuel prices remain stable over a longer period, Civil Aviation Minister K Ram Mohan Naidu said on Thursday.
Speaking with reporters, Naidu said the Centre was closely monitoring aviation turbine fuel (ATF) prices and was in discussions with airlines to assess whether the recent decline in prices was sustainable.
Currently government reviews ATF prices on a fortnightly basis, based on movement of global crude prices. Besides it has also created a Rs 10,000 crore price stabilisation fund to support airlines in times of distress due to West Asia crisis.
"Secondly, now that we are seeing prices coming down, we still have to see if this is a long-term reduction or if it is sudden, and we are talking to the airlines on this," the minister said.
He said the past few months had been significant for the aviation sector and any decision on fare-related charges would depend on the stability of fuel prices.
"The last 4 months have been very important for the airlines... Once we are clear that price stability will continue for a long time, we will talk to them and work towards reducing the surge charges or the extra prices we are seeing right now," Naidu told ANI.
Highlighting the government's efforts to address concerns related to fuel costs, the minister added, "In the case of ATF, we have also provided a price stabilisation fund of Rs 10,000 crore."
"So you can see how important the Indian government is considering this issue right now," he noted.
Amid the ongoing geopolitical crisis, the government has capped ATF prices for domestic scheduled operators, reduced airport charges, and extended support under the Emergency Credit Linkage scheme.
— ANI
Reader Comments
Finally some accountability! As someone who travels frequently for work, those extra charges have been killing my budget. Rs 10,000 crore stabilisation fund seems like a good move, but I wonder how much of that will actually reach passengers.
I've been following aviation fuel trends globally. India's approach of fortnightly reviews is practical, but airlines have been quick to raise fares on fuel hikes and painfully slow to reduce them. The government should implement automatic pass-through mechanisms tied to crude prices.
Yaar, this is a welcome step, but I remember similar promises from previous ministers. Let's see some action first. The Middle East crisis has been going on for months, and our ticket prices have been sky high. Passengers deserve relief, not just statements!
The Rs 10,000 crore stabilisation fund is impressive, but I'm curious how this will be operationalised. Having lived in both India and the US, I've noticed Indian airlines often lack transparency in pricing. A clear policy on surge pricing would be more helpful than periodic reviews.
As a student who flies home twice a year, this gives me some hope. But I wish the government would also look at airport taxes and handling charges—those don't depend on crude prices but still make tickets expensive. Aur haan, please don't forget regional connectivity too! ✈️
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