The Civil Aviation ministry is making a renewed push to bring aviation turbine fuel under the goods and services tax regime as it looks to provide relief to airlines struggling with coronavirus situation. “We are making a renewed push for ATF to be included in GST. 2-3 other revenue streams of state governments are linked to ATF prices, we have asked for delinking them as well,” Aviation Minister Hardeep Singh Puri told CNBC-TV18 in an exclusive interaction. “We have asked for ATF price adjustments every 15 days given fall in crude prices,” Puri added.
CNBC-TV18 had exclusively reported quoting sources on March 9 that the Ministry of Civil Aviation has requested the Ministry of Petroleum and Natural Gas to update jet fuel prices every 15 days. Currently, aviation turbine fuel (ATF) prices are revised on the first of every month. “We have taken some measures, will take more,” Puri added. While the government is working on relief measures for the airlines, Puri also said that the dip in demand due to the recent travel restrictions will affect airlines but not to an extent where they cannot survive it.
“For a large civil Aviation market like India, 15-20 percent drop is not what airlines cannot take in their strength,” Puri said when asked about the recent cancellations of over 600 flights till March 6 and 15-20 percent dip in daily bookings seen by India’s largest airline IndiGo. “We are committed to resolving this issue but we have to meet the challenges. We are constantly trying to take measures to assist airlines,” Puri added.