Government may ask airlines to cut surcharges as fuel prices ease

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The government may soon ask airlines to review and reduce surge pricing and additional passenger charges if the recent decline in crude oil and aviation fuel prices proves to be sustainable, Civil Aviation Minister K Ram Mohan Naidu said on Thursday.

The Centre is closely monitoring trends in aviation turbine fuel (ATF) prices and has initiated discussions with airlines to assess whether the current easing in fuel costs is likely to continue over the long term. "At present, we are seeing prices coming down, but we need to assess whether this is a long-term reduction or a temporary fall. Discussions with airlines are underway," Naidu said.

The minister noted that the aviation sector has faced considerable challenges in recent months due to geopolitical tensions, which led to volatility in crude oil prices and increased operational costs for airlines. Higher fuel costs had prompted carriers to levy additional charges and adjust fares to offset rising expenses.

Naidu said the government would engage with airlines on reducing these extra charges once there is greater confidence that aviation fuel prices have stabilized over a sustained period. The objective is to ensure that the benefits of lower fuel costs are eventually passed on to passengers.

To support the aviation industry during periods of market volatility, the government has introduced several measures, including a Rs 10,000 crore price stabilisation fund. It has also implemented steps such as capping ATF prices for domestic scheduled airlines, reducing certain airport charges and extending emergency credit support to carriers.

The minister said the government will continue to closely track developments in global energy markets and domestic fuel prices before taking any further decisions regarding airfare reductions.

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