Civil Aviation Minister Vayalar tells states to cut tax on jet fuel
Bangalore, Sep 19 (IANS) Union Civil Aviation Minister Vayalar Ravi Monday urged states across the country to waive extra sales tax on aviation turbine fuel to minimise the impact of the recent price hike on airlines.
"I urge the states to waive extra sales tax on aviation fuel as Kerala did by not increasing it in commensurate with the fuel hike by oil marketing firms. Otherwise, air travel becomes costlier and passengers face hardship," Ravi said at a civil aviation conference here.
Following a sharp depreciation of the rupee against dollar, state-run oil marketing firms September 15 increased jet fuel price 2.5 percent to Rs.58.45 per litre from Rs.56.97, forcing private airlines like Jet Airways to pass the burden on hapless passengers by increasing air fares Rs.200-300 per ticket on domestic routes.
"I regret to say no other state has followed Kerala in giving relief to the civil aviation industry. I appeal to them (states), irrespective of which party is in power, to lower taxes on turbine fuel," Ravi said.
Holidays bring in air fare hike
Travelling on domestic routes will cost you Rs200 to Rs300 more due to a hike in aviation turbine fuel price from Rs56.97 per litre to Rs58.45.
“With the recent hike in turbine fuel prices, Jet Airways has decided to increase its fuel surcharge by Rs200 in domestic sector. This will be applicable on all flights of Jet Airways, Jet Airways Konnect and JetLite, for sale and travel effective September 17, 2011,” said the spokesperson for the airlines. Aviation turbine fuel constitutes 40% of an airline’s operational costs.
Following suit are other airlines who are also thinking of adding fuel surcharge to their tickets. “A price hike on the airfare is imminent and will happen soon though we cannot tell you when,” said an official from Kingfisher Airlines.
However, national carrier Air India (AI) is still in the wait and watch mode. “We are monitoring the price hike and our commercial department will make a decision. We are undecided yet,” said an AI official.
Moneycontrol.comOtherwise, air travel becomes costlier and passengers face hardship," Ravi said at a civil aviation conference here. Following a sharp depreciation of the rupee against dollar, state-run oil marketing firms September 15 increased jet fuel price 2.5 State govts should reduce surcharge on aviation fuel: Aviation Minister Air India: GoM to decide on further equity infusion soonall 14 news articles »
Moneycontrol.comNEW DELHI: After two consecutive price cuts, state-owned oil companies today hiked jet fuel, or ATF, price by 2.5 per cent in line with firming of international oil rates. Aviation Turbine Fuel (ATF) price at Delhi's T3 airport was hiked by Rs 1429 per Oil companies hike ATF price by 2.5%all 21 news articles »
Moneycontrol.comTravelling on domestic routes will cost you Rs200 to Rs300 more due to a hike in aviation turbine fuel price from Rs56.97 per litre to Rs58.45. “With the recent hike in turbine fuel prices, Jet Airways has Airfares go up as oil cos raise ATF pricesPetrol Rs 10 up on jet fuelJet Airways hikes airfares -all 37 news articles »
After weeks of dispute about high aviation fuel prices and the blockage of alleged unauthorized fuel from entering Ogle Airport , the major fuel supplier there has since dropped the price. An industry source explained that prior to the reduction,
