NewzVille Desk
Due to Iran war and difficulties in supply of oil due to blockage of Strait of Hormuz, India’s Ministry of Petroleum and Natural Gas is trying to shield domestic airlines from full fuel price surge.
The ministry has limited the increase in Aviation Turbine Fuel prices for domestic airlines to 25%, even as global benchmarks indicated a potential spike of over 100% from April 1.
In a clarification, the ministry said ATF prices in India have been deregulated since 2001 and are revised monthly based on international benchmarks. It noted that the current “extraordinary situation in global energy markets” had led to expectations of a sharp increase in domestic ATF prices.
The ministry also said that in order to insulate the domestic travel costs from the substantial increase in international prices, PSU Oil Marketing Companies of the Ministry of Petroleum, in consultation with Ministry of Civil Aviation, have passed only a partial and staggered increase of 25% i.e. only Rs.15/litre to the airlines.
It added that foreign routes will however pay for the full increase in ATF prices consistent with what they pay in other parts of the world.
