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

Cargo Talk - - News - CT BUREAU

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

Of­fi­cer, EICI.

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.

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