Lok Sabha Question No. 979 (UNSTARRED), answered on 2026-02-05
Subject: Rationalisation of Aviation Turbine Fuel
Ministry: CIVIL AVIATION
Asked by: Shri Ashok Kumar Rawat, Shri Bhartruhari Mahtab, Shri Yaduveer Wadiyar, Dr. K Sudhakar, Shri Kali Charan Singh, Shri Yogender Chandolia, Shri Damodar Agrawal, Shri Tapir Gao, Smt. D K Aruna, Shri Manish Jaiswal, Shri Dineshbhai Makwana, Shri Chandra Prakash Joshi, Shri Praveen Patel

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

## LOK SABHA UNSTARRED QUESTION NO. : 979

( TO BE ANSWERED ON THE  5th February 2026 )

## RATIONALISATION OF AVIATION TURBINE FUEL

979.      SHRI TAPIR GAO

SMT D K ARUNA

SHRI DAMODAR AGRAWAL

SHRI KALI CHARAN SINGH

DR. K SUDHAKAR

SHRI YOGENDER CHANDOLIA

SHRI ASHOK KUMAR RAWAT

SHRI BHARTRUHARI MAHTAB

SHRI MANISH JAISWAL

SHRI YADUVEER WADIYAR

SHRI PRAVEEN PATEL

SHRI DINESHBHAI MAKWANA

SHRI CHANDRA PRAKASH JOSHI

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a)  the  manner  in  which  Aviation  Turbine  Fuel  (ATF)  price  movements  have influenced ticket pricing and airline cost structures;
- (b) whether discussions have been held with the State Governments to rationalise ATF taxation and if so, the details thereof;
- (c) the safeguards in place to prevent excessive surge in pricing during peak travel periods;
- (d) the improvements made to passenger grievance redressal and refund enforcement mechanisms;
- (e)  the  steps  taken  by  the  Government  to  prevent  aviation  monopoly  by  certain airlines in the country; and
- (f) the details of new airline licenses pending before the Ministry of Civil Aviation including the steps taken to expedite the same?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION      (Shri Murlidhar Mohol)

- (a)  &  (b):  Aviation  Turbine  Fuel  (ATF)  constitutes  approx.  40-50%  of  the  total operating expenses of an airline. Levying of VAT by the State/UT Government on ATF also affects its prices. The issue of high VAT on ATF has been taken up with the States/ UTs by this Ministry on regular basis. 06 States/UTs are still charging VAT, 18% or more.

(c): Airfares are not subject to regulation by the Government and airlines have the flexibility  to  determine  their  airfares  based  on  their  operational  needs,  while adhering to Rule 135 of the Aircraft Rules, 1937. The Government generally refrains from regulating airfares to maintain market competitiveness, however, it remains vigilant  and  intervenes  in  exceptional  circumstances  by  adopting  measures  like redistributing  capacity  across  various  sectors  and  imposing  temporary  fare  caps, such  as  during  Pandemic,  Maha  kumb,  Pahalgam  incident  &  recently  massive Indigo flight disruptions.

In order to enhance the transparency in airfare, Directorate General of Civil Aviation (DGCA) has set-up Tariff Monitoring Unit (TMU) that monitors airfares on selected 78 routes on a random basis by using airlines websites on monthly basis to ensure that  the  airlines  do  not  charge  airfares  outside  the  range  declared  by  them.  This covers about 27% of the domestic traffic. By doing so, the TMU plays a critical role in maintaining airfare levels within the boundaries of the airlines' prescribed tariffs.

(d): Ministry of Civil Aviation (MoCA) has established a 24x7 Passenger Assistance Control  Room  (PACR)  to  enhance  passenger-centric  governance.  This  initiative integrates  MoCA,  DGCA,  AAI,  and  airlines  for  real-time  monitoring  of  flight disruptions, baggage issues, and refunds, aiming to accelerate grievance redressal and  improve  the  overall  travel  experience.  Further,  passenger  can  lodge  their grievances on Air Sewa Portal for timely redressal.

(e) & (f): There are no regulatory entry barriers for new airline entrants, and any company desirous of starting an airline can approach the Government with their proposed business plan for obtaining initial NOC. In last two years, the Ministry has given NOC to 07 airlines.

Further,  capacity  diversification  is  being  encouraged  through  rationalisation  of traffic rights, expansion of airport infrastructure, facilitation of fleet induction by multiple  carriers,  and  broadening  of  regional  air  connectivity  under  the  UDAN Scheme, which enables several  airlines  to  operate  on  underserved  and  unserved routes.

MoCA has implemented the e-Sahaj (Single Window Digital Platform) for online processing of civil aviation related approvals, including issuance of NOCs, to ensure transparency and time-bound clearances and DGCA processes applications for AOC through  its  online  e-GCA  /  digital  certification  systems,  enabling  electronic submission, tracking and monitoring of applications.