Patel to meet Deora for reduction in ATF prices

New Delhi, Dec 21 (UNI) Public sector oil companies must reduce base prices of air turbine fuel (ATF) so that airlines can reduce their operating costs, civil aviation minister Praful Patel said today.

''Oil companies should bring down ATF prices to realistic levels.

It will be good for the aviation industry,'' said the minister adding he will soon meet minister for petroleum and natural gas Murli Deora in this context.

Mr Patel said more private oil companies like Reliance and Essar should be allowed to sell ATF to airlines at various airports across the country.

Fuel charges make up almost 40 per cent of an airline's operating cost. Most carriers charge Rs 650 as fuel surcharge to offset huge losses.

Mr Patel said he will also meet finance minister P Chidambaram and try to pursude him for reduction in excise duty on ATF. Besides the central excise duty, state governments impose a sales tax ranging from four to 34 per cent.

ATF prices have jumped by over a third in the past one year due to rising crude oil prices worldwide. Even though fuel surcharge is levied by most global airlines, the charge is increasingly coming under regulatory scanner.

UNI SU SRS HT1927