- Government may ask airlines to reduce surge charges if fuel price stability continues
- Civil Aviation Minister said decision depends on long-term aviation fuel price trends
- Centre is monitoring aviation turbine fuel prices and discussing with airlines
Anticipating sustained stability in crude oil prices, the government may ask airlines to review and reduce surge charges and additional fares, Civil Aviation Minister K Ram Mohan Naidu said on Thursday.
The Centre is closely tracking the movement of aviation-turbine-fuel prices and is in talks with airlines to determine whether the recent fall in aviation fuel costs is sustainable over the long term. Any decision on reducing passenger surcharges will depend on the stability of aviation fuel prices over the coming months, according to reports.
"At present, we are seeing prices coming down, but we need to assess whether this is a long-term reduction or a temporary fall. Discussions with airlines are underway," The Economic Times quoted Naidu as saying.
The minister said the aviation sector has witnessed a challenging period in recent months, with geopolitical tensions impacting fuel prices and airline operations. He added that once the government is confident that fuel costs have stabilised for a longer duration, it will engage with carriers to explore a reduction in extra charges currently being levied on passengers.
To support the aviation industry during periods of volatility, the government has introduced measures, including a Rs 10,000 crore price stabilisation fund. It has also taken steps such as capping ATF prices for domestic scheduled airlines, reducing certain airport charges and extending support through emergency credit measures.
Naidu said the government is continuing to monitor developments and wants greater clarity on the sustainability of current fuel trends before taking further action, according to reports.
With ATF accounting for a significant portion of airline operating expenses, any reduction in fuel-related costs could provide relief to passengers if airlines pass on the benefits through lower surcharges and fares.
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