Discussions on with airlines, OMCs over high jet fuel prices: Civil Aviation Min Naidu

NEW DELHI: Civil Aviation Minister K Rammohan Naidu on Tuesday said the ministry is in discussions with airlines and oil marketing companies on high jet fuel prices due to the West Asia crisis.

Airlines are facing headwinds due to the rising prices of Aviation Turbine Fuel (ATF), which accounts for around 40 per cent of a carrier's operational costs.

"One of the most important things is how the West Asia crisis is putting a big burden on ATF prices. We are in discussions with airlines and OMCs (Oil Marketing Companies)," Naidu said on the sidelines of a conference in the national capital on Tuesday.

On Monday, the country's largest airline IndiGo announced a hike in fuel surcharge for domestic and international flights in the wake of rising jet fuel prices.

IndiGo had said ATF prices have remained volatile in recent months, especially following the geopolitical situation in the Middle East.

According to the airline, the continuous rise in fuel prices, with the latest month-on-month increase exceeding 14 per cent, has taken ATF costs to levels that are amongst the highest in the last decade.