Oil prices fall to $70: Will your flight tickets get cheaper?
As global crude benchmarks had earlier surged beyond the $100 per barrel mark, air travel became costlier due to a sharp rise in aviation turbine fuel (ATF) prices and surcharges. However, with crude prices now falling close to pre-war levels, questions are rising over what this could mean for fuel
By Toi Business Desk
As global crude benchmarks had earlier surged beyond the $100 per barrel mark, air travel became costlier due to a sharp rise in aviation turbine fuel (ATF) prices and surcharges.
However, with crude prices now falling close to pre-war levels, questions are rising over what this could mean for fuel charges across the country.The Union government on Thursday expressed the possibility of asking airlines to reassess surge charges and additional fare components if aviation fuel prices remain stable over an extended period.
Addressing reporters, civil aviation minister K Ram Mohan Naidu said that the government is closely tracking aviation turbine fuel (ATF) prices and is holding discussions with airlines to determine whether the recent decline in fuel costs is likely to continue.At present, ATF prices are reviewed by the government every fortnight, depending on movements in global crude oil prices.
In addition, a Rs 10,000 crore price stabilisation fund has been set up to support airlines during periods of financial stress arising from the 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 added that the past few months have been particularly important for the aviation sector, and any decision on fare-related charges would depend on whether fuel price stability is sustained."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 government measures to address fuel cost concerns, he further said, "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 also capped ATF prices for domestic scheduled operators, reduced airport charges, and extended support under the Emergency Credit Linkage Scheme.Get the latest business news and top stories.
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