Roll back fuel surcharge: EICI
Express Industry calls for a transparent and market driven mechanism to determine pricing. With the fall in price of global crude oil, express industry demands domestic airlines to cut down fuel surcharge. Airlines need to appreciate that FSC is purely a
Following the sharp fall in global crude oil prices by nearly 35 per cent over the last one year, the Express Industry Council of India (EICI) has asked for an immediate withdrawal of Fuel Surcharge (FSC) levied by domestic airlines. Currently, domestic airlines in India charge between ` 13-16.50 per kilogram as fuel surcharge.
Fuel surcharge on shipments is levied on a per kilogram basis and was introduced in May 2008 to mitigate volatility in fuel prices. Air Turbine Fuel (ATF) prices then was ` 58,387 per kl and the FSC was fixed by airlines at
` 5 per kg for cargo shipments. “Currently, the ATF price is at ` 52,423 per kl which is 10 per cent lower than the 2008 price but the FSC charged is as high as ` 16.50 per kg for the cargo shipments. In the past as well when fuel prices fell, airlines continued to increase their FSC,” said
Vijay Kumar, Chief Operating
The industry has also sought the intervention of the Civil Aviation Ministry and the Director General of Civil Aviation (DGCA) for an immediate redress of the current issue and the long term demand for the trade to have a transparent and market driven mechanism for determining such pricing.