New Delhi: Civil Aviation Minister Praful Patel on Tuesday asked airlines to reduce fares, a day after major carriers refused to commit to a fare cut in response to a fresh reduction of ATF prices.
"It is also imperative (on the part of airlines) to respond now that ATF rates have been brought down, that they reduce the fares," he told reporters outside Parliament.
The minister said airlines must reciprocate the government's gesture to help the aviation industry, which has been been going through rough weather this year.
"We supported the industry when they were in difficulty. We gave them extended credit, staggered repayment of their dues and abolished customs duty on ATF," he added.
State-run oil companies yesterday slashed jet fuel prices by over 11 per cent. ATF in Delhi was cut by Rs 4,208.37 to Rs 32,691.28 per kilolitre.
This is the seventh straight cut in jet fuel prices since price soared to an all time high of Rs 71,028.26 per kl (in Delhi) in August. With international oil prices cooling since, the fuel prices have been slashed in subsequent months.
In Mumbai ATF will cost Rs 33,719.46 per kl against Rs 38,103.19 per kl earlier.
Since last month, Indian Oil, Bharat Petroleum and Hindustan Petroleum revise jet fuel prices twice a month - on the first and 16th - based on the average imported price in the preceding fortnight.
The three firms had earlier this month cut jet fuel prices on an average by Rs 2,480 per kl.
However, carriers are non-committal over cutting fares immediately. After the cut was announced yesterday, airlines said they were yet to take a decision on fare reduction.
Jet fuel constitutes about half the operation costs of airlines in the country.
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