Naidu: Ministry Engaging Stakeholders to Address High Jet Fuel Prices
NEW DELHI, Oct 15: The Civil Aviation Ministry is facilitating discussions with airlines and other industry stakeholders to address rising aviation fuel costs and ensure that airfares remain affordable, Union Civil Aviation Minister K Rammohan Naidu said on Thursday.
Aviation Turbine Fuel (ATF), which accounts for nearly 40 per cent of an airline’s operating expenditure, has become increasingly expensive in recent months amid the ongoing conflict in West Asia. The increase has placed additional financial pressure on airlines and raised concerns about its potential impact on ticket prices.
Addressing questions about the possible revival of an ATF price stabilisation fund, Naidu said the government was discussing the matter with airlines. However, he acknowledged that managing fuel costs remains difficult because of fluctuations in international prices.
The minister stressed that cooperation between airlines and oil marketing companies would be essential to finding a sustainable solution. He indicated that the ministry was working to bring the relevant parties together to explore possible measures to ease the burden of higher fuel expenses.
“We need support from the Oil Marketing Companies (OMCs) also… airlines also have to come up with a different plan,” Naidu said, adding that the ministry was facilitating dialogue among stakeholders.
He also underlined the government’s intention to keep air travel reasonably priced during the festive season, when passenger demand typically increases. Higher fuel costs can affect airlines’ pricing decisions, making coordination between industry participants important for limiting the impact on travellers.
The discussions come at a time when the aviation sector is facing uncertainty over fuel prices and operating expenses. Since ATF represents a substantial share of airline expenditure, sustained increases can affect profitability and influence decisions on fares and capacity.
Naidu made the remarks while speaking to reporters on the sidelines of a function organised in the national capital to mark the 42nd Raising Day of Pawan Hans.
The ministry’s ongoing engagement with airlines and oil marketing companies is aimed at examining possible approaches to the fuel-price challenge while balancing the financial requirements of aviation operators with the need to maintain affordable air travel.
No final decision on reviving the ATF price stabilisation fund was announced during the minister’s interaction with reporters.
