Since the global crude benchmark earlier crossed $100 a barrel, air travel became costlier due to a sharp increase in aviation turbine fuel (ATF) prices and surcharges. However, with crude oil prices now falling close to pre-war levels, questions are being raised about what this could mean for fuel tariffs across the country.The central government on Thursday raised the possibility that if aviation fuel prices remain stable for a long time, airlines may be asked to re-evaluate surge charges and additional fare components. Addressing reporters, Civil Aviation Minister K Ram Mohan Naidu said the government is closely monitoring aviation turbine fuel (ATF) prices and is discussing with airlines to determine whether the recent decline in fuel costs is likely to continue.Currently, ATF prices are reviewed by the government every fortnight based on fluctuations in global crude oil prices. Additionally, a Price Stabilization Fund of Rs 10,000 crore has been set up to support airlines during the financial stress arising from the West Asia crisis.“Secondly, now that we are seeing a reduction in prices, we still have to see whether it is a long-term cut or it is sudden, and we are talking to the airlines on this,” the minister said.He said the last few months have been particularly critical for the aviation sector, and any decision on fare-related charges will depend on whether fuel price stability is maintained.“The last 4 months have been very crucial for the airlines… Once we are clear that price stability will continue for a longer period of time, we will talk to them and work towards reducing the surge charges or additional prices that we are seeing now,” Naidu told ANI.Highlighting government measures to address fuel cost concerns, he further said, “In the case of ATF, we have also provided a price stabilization fund of Rs 10,000 crore.”“So you can see how important the Government of India is considering this issue right now,” he said.Amid the current geopolitical crisis, the government has capped ATF prices for domestic scheduled operators, reduced airport charges and increased support under the Emergency Credit Linkage Scheme.
