In the wake of recent hike in airline fares owing to rise in aviation turbine fuel prices, the Civil Aviation Minister Praful Patel on Thursday met Union Finance Minister P Chidambaram and sought reduction in excise duty on the fuel in the Budget.
"Several airlines including private and public carriers have been complaining about the continued spurt in ATF prices. It is an area of concern. It should be reduced so that airline fares comes down," Patel told reporters after meeting Chidambaram in New Delhi.
He said that the finance minister has agreed to consider a reduction in excise duties on ATF in the Budget.
Patel said that his ministry was trying its best to bring down the prices of ATF besides regularising the sales tax levied by various states.
"We want to bring down the prices as it has a direct impact on the consumers," Patel said, referring to the recent 10 per cent hike in fares by all airlines.
Patel had also met private operators and the Confederation of Indian Industry, which demanded reduction in duties on ATF.
Chidambaram refused to answer to queries on whether the government would slash excise duty on ATF in the Budget.
On the constitution of empowered Group of Ministers for Aviation, Patel said that it would be constituted soon and the group would look into various issues of civil aviation.
Asked whether the GoM would also look into the fleet acquisition for the Indian Airlines and Air-India, Patel said it would look into every aspect of the aviation ministry.
He declined to comment on whether the government would provide Rs 325 crore (Rs 3.25 billion) required for fleet acquisition in the forthcoming Budget.
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