ATF prices fall, air fares won’t
New Delhi: In a twin treat for the cash-strapped aviation industry on Friday, oil companies slashed aviation turbine fuel (ATF) prices by 17% while the Centre abolished customs duty of 5% on ATF, a move that will see a further drop in prices by November 15.
Though ATF prices have come down by a whopping 38% over the past three months, domestic airlines, especially full service ones, are unlikely to reduce the high fuel surcharge they started levying when ATF was at its peak of over Rs 71,000 per kilolitre in August.
The cut has taken ATF prices to the level of March 2008 when there was a uniform surcharge of Rs 1,650. But the surcharge today is nearly double that figure as it has been hiked several times.
A short sector flight has a fuel surcharge of Rs 2,250-Rs 2,350 and medium ones have a cess of Rs 2,900-3,100. Fares have soared since March, leading to fewer people flying within India this summer than last summer.
FUEL Factor
ATF prices started rising in April and peaked in August Fuel surcharge kept rising and peaked in July ATF prices have fallen 38% since September Today, ATF prices are at March levels but surcharge is at peak price level along with higher base fares
