'Waive surcharge on ATF'

Civil aviation minister Vayalar Ravi on Monday urged state governments to waive the surcharge on aviation turbine fuel (ATF) to minimise the impact of the recent fuel price hike.

Blaming international politics for high crude prices, he lamented developing countries like India were suffering due to their overdependence on imports in the absence of alternative fuels or technologies for transportation and industrial use.

“Capitalist or western countries don’t get impacted as we do, when crude prices go up frequently for various factors. With crude imports accounting for much of the foreign exchange outgo, forex reserves are dipping despite higher remittances, especially from non-resident Indians in the Gulf region,” Ravi said at a civil aviation conference here.

“I urge state governments to waive the surcharge on aviation fuel just as Kerala did, by not increasing it in line with the recent fuel price hikes by oil marketing companies.”

With the sharp depreciation of the rupee vis-a-vis the dollar, state-run oil marketing companies raised jet fuel price by 2.5 per cent to Rs 58.45 per litre, from Rs 56.97, on Thursday.

This forced private airlines to pass on the burden by increasing airfares by Rs 200-300 per ticket on domestic routes.

“No other state has followed Kerala in providing a relief to the civil aviation sector,” Ravi said.

While air travel is no longer a luxury, Ravi said volatile crude prices were not good for the Indian economy, as frequent increases in fuel prices would make it less affordable. “India is at the mercy of oil producing countries, with over 80 per cent of its needs being met through imports. In the absence of adequate resources, we depend heavily on imports to sustain the high growth despite volatile crude prices,” he said.

The aviation ministry would allow the private sector to build and operate airports, if interested firms acquire land before applying for clearance, according to him. “As part of basic infrastructure, airports and airstrips will increase air connectivity and improve the economy,” he said.