Aviation ministry looks for ways to slash jet fuel prices

NEW DELHI Thu Nov 29, 2012 5:38pm IST

Children stand on top of a hill overlooking Chhatrapati Shivaji International Airport as an Airbus A320 aircraft of comes in to land in Mumbai September 17, 2012. REUTERS/Vivek Prakash/Files

Children stand on top of a hill overlooking Chhatrapati Shivaji International Airport as an Airbus A320 aircraft of comes in to land in Mumbai September 17, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

NEW DELHI (Reuters) - The civil aviation ministry will try to convince the country's petroleum ministry next week to declare jet fuel as a "notified good," which would lead to exemption from high state taxes, providing some relief to battered local carriers.

Jet fuel makes up about half of an airline's costs.

Civil aviation minister Ajit Singh will meet petroleum minister M. Veerappa Moily early next week to discuss the matter, the former told reporters on Thursday.

State taxes of as much as 30 percent make jet fuel more than 50 percent expensive in India compared with the global average, and global airlines have often criticized such high taxation.

(Reporting by Anurag Kotoky; Editing by Prateek Chatterjee)

FILED UNDER:

REUTERS SHOWCASE

2015: India Outlook

2015: India Outlook

India in 2014: A dream run for markets  Full Article 

Funding Woes

Funding Woes

Co-founder of SpiceJet seeks time to finalise rescue  Full Article 

Regulating Airfares

Regulating Airfares

India considers temporary cap on airfares - government official  Full Article 

Flying Back on Course

Flying Back on Course

The inside story of the new Airbus A350 jet  Full Article 

Oil Price Forecast

Oil Price Forecast

Oil prices likely to rebound in second half of 2015: poll  Full Article 

Cyber Attacks

Cyber Attacks

China condemns cyberattacks, but says no proof N.Korea hacked Sony  Full Article 

Connecting Markets

Connecting Markets

China stock connect scheme scorecard throws up surprises  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage