Union Minister of Civil Aviation, K Rammohan Naidu, indicated relief for air travellers saying that the government may consider withdrawing fuel surcharges imposed by airlines once aviation turbine fuel (ATF) prices show sustained stability.
When Times Now asked if the government is asking the airlines to remove the surcharge as the fuel prices have stabilised, Minister Rammohan Naidu said that the government has already set up a Rs 10,000 crore price stabilisation fund to cushion the aviation sector from sharp fuel price volatility.
He noted that the initiative reflects the government’s focus on maintaining stability in a sector that has faced significant cost pressures.
“On ATF, we have also provided a Rs 10,000 crore price stabilisation fund. This shows how importantly the Government of India is treating this problem,” he said.
The minister further said the recent declines in ATF prices are being closely monitored, but cautioned against drawing early conclusions. Naidu said that it is still unclear whether the dip represents a long-term stabilisation or a temporary fluctuation.
“We are continuously discussing with airlines. The last four months have been very critical for them in terms of operations due to price instability. We would like to observe the situation a little longer to confirm whether stability is sustained,” he said.
Naidu further explained that the government is in ongoing dialogue with airlines and will reassess pricing conditions before taking any decision on reducing or removing fuel surcharges currently being passed on to passengers.
“If we see that stability continues for a longer period, we will certainly talk to airlines about bringing down additional charges as well,” he added.
The crude oil prices have fallen down to the pre-Iran wat levels slipping to a fresh low of around $72 per barrel in international markets.
Shares of InterGlobe Aviation, the parent of IndiGo, surged 4.49%, benefiting from expectations of lower aviation fuel costs.