Domestic airlines body FIA is likely to meet Petroleum Minister Dharmendra Pradhan tomorrow over the alleged “opaque” pricing of jet fuel by oil marketing firms and seek government’s intervention in resolving the issue.
The Federation of Indian Airlines (FIA) during the proposed meeting is also expected to raise other related issues, including oil companies alleged failure to bring down ATF prices in line with the reduction in crude prices since 2014, sources said.
Any upward or downward revision in aviation turbine fuel prices directly impacts air fares as fuel costs account for over 40 per cent of an airline’s operating cost.
FIA is a body of four established domestic private airlines — Jet Airways, IndiGo, SpiceJet and GoAir.
“There is lack of transparency in deciding ATF prices by the oil companies. We have raised this issue with them in the past but as it remained unresolved, we want the government to look into the issue now,” a source said.
Sources said to discuss the issue, FIA has sought a meeting with Pradhan, which is likely to take place tomorrow.
Significantly, the jet fuel price was yesterday hiked by 1.5 per cent, which came on the back of a steep 8.7 per cent or Rs 3,371.55 per kl hike on April 1.
Prior to that, rates were hiked by steep 12 per cent, or Rs 4,174.49 on March 1, which led the four major airlines to seek deferment of payment of increased amounts.
“Because of lack of transparent pricing mechanism, airlines are made to pay much higher prices for jet fuel in India compared to countries like Singapore. FIA will be taking up this issue as well with the government,” the source said. Akeem Spence JerseyShare This