Aiming to bring transparency in the pricing of jet fuel, civil aviation minister Ajit Singh on Saturday said plans are afoot to bring air turbine fuel (ATF) under the Petroleum and Natural Gas Regulatory Board (PNGRB).
The move will help airlines know about the pricing methods and changes in it, he said on the sidelines of a function here. “We are planning to bring ATF under the regulator, so that there is some transparency on how it is priced,” he said.
Singh was replying to a question on steps taken by the government to control the ATF in view of the high cost incurred by the airlines sector. “There are only three companies that totally control the market and when it comes under the regulator, we will come to know why it (ATF) is priced and how it is changed,” he said.
Earlier addressing the Ficci 85th Annual General Meeting here, Singh said that 50% of the operating cost in the aviation sector is in the form of jet fuel. “Aviation sector is under stress, especially in India, there is a lot of financial stress. No bank is willing to expose themselves for the aviation sector, not even for the working capital. The cost has gone up tremendously,
because 50 % of the operational cost in the aviation sector is ATF and ATF prices have been going up,” he said.
Singh had recently met oil minister M Veerappa Moilyseeking relief on issues related to the high cost of aviation fuel.