Patel asks Oil PSUs to lower fuel prices

Bangalore: Civil aviation minister Praful Patel said on Thursday that he had received a "positive response" from state-owned oil firms to cut base prices of Jet fuel.
Indian airlines facing pressure from falling fares are also seeking lower taxes on Jet fuel, which makes up nearly 30% of a carrier's operating cost.
"The reason is not only taxation, but also that the oil PSUs are charging a higher base price," he said in response to a question on whether there would be a reduction in tax on Jet fuel in the upcoming federal budget on February 28.
Separately, Patel said there were still some matters to be sorted on a proposed merger of state-owned airlines Indian and Air-India. "Some issues on workers, how they will be integrated and seniority, and other issues are being looked into," he said.
09/02/07 Times of India

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Categories: General Aviation feb 2007