Hike in jet fuel price to jack up air fares: PatelBy IANS
Monday, January 17, 2011
NEW DELHI - Any increase in aviation turbine fuel (ATF) will have an impact on the cost of flying, Civil Aviation Minister Praful Patel said Monday, adding that the government would not allow exorbitant fares to be charged on any pretext.
“The fuel prices are directly linked to the fares, so it is but natural that when fuel prices goes up then the fares also go up,” Patel told reporters here on the sidelines of an industry event.
Patel said that his ministry won’t allow exorbitant fares to be charged on any pretext.
Recently, the three major state-owned oil marketing companies (OMCs) increased the price of jet fuel in the national capital by two percent which stood at Rs.48,764 per kilolitre from Rs.47,816 per kilolitre.
Oil companies have increased ATF seven times since October 2010. The last hike was of Rs.935 per kilolitre Jan 1.
Patel said that his suggestion to the finance ministry for this year’s budget would be to slash sales taxes on ATF and to infuse another Rs.2,000 crore equity into the cash-strapped national carrier Air India.