Question : FUEL PRICES OF ATF



(a) whether the prices of Aviation Turbine Fuel (ATF) are significantly higher than the global average ATF prices;

(b) if so, the reasons therefor;

(c) whether high ATF prices constitute a major portion of the operating coasts of airlines; and

(d) if so, the details thereof?

Answer given by the minister


MINISTER OF CIVIL AVIATION (SHRI AJIT SINGH)

(a) and (b):- Yes, Madam. ATF prices in India are higher than the International benchmark. ATF prices in India and foreign countries (as on 16.3.2012) are as under:

Cities abroad	Cost of ATF (in Rs.)	Cities in India	Cost of ATF (in Rs.)

Sharjah 45574 Kolkata 72866 Bangkok 44168 Chennai 68765 Dubai 44384 Mumbai 65399 Singapore 43208 Delhi 63469

(1$=50.1600 sources: Yahoo Finance)

Fixation mechanism of ATF prices in India by Oil Marketing Companies and multiple taxes imposed by Central and State Government and advalorem duty structure on ATF, alongwith volatile international oil prices, depreciation in Rupee are the reasons for high ATF prices in India.

(c) and (d):- Yes, Madam. ATF is major component of operating cost of airlines as it constitutes 35-40% of the operating cost of the airlines.