Leading airlines have demanded rollback of 12% price hike in aviation turbine fuel (ATF). The ATF costs account for 40% of cost of operations of airlines. This could lead to 4-5% increase in raw material cost of airlines, which could be passed on to consumers. The airliners also seek an independent regulator for ATF pricing. The independent regulator will be autonomous from the govt.
The govt. said hike was due to increase in excise duty on aviation fuel. Out of 11.5% hike, 5% is due to increase in input costs of ATF (still cheaper than petrol and diesel) and rest is due to increase in excise duty.
All the best!