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.