The government may ask airlines to reassess surge pricing and additional fare components if crude oil prices continue to remain stable over a longer period, Civil Aviation Minister K Ram Mohan Naidu said on Thursday. The move comes amid easing global crude prices and ongoing volatility in aviation fuel costs.At present, the centre reviews Aviation Turbine Fuel (ATF) prices every fortnight based on global crude oil movements. In addition, the government has set up a ₹10,000 crore price stabilisation fund to help airlines manage financial stress arising from fuel price fluctuations, particularly during geopolitical disruptions such as the ongoing US-Iran conflict.
The minister said the government is actively tracking ATF prices and is in continuous discussions with airlines to determine whether the recent decline in fuel costs represents a sustained trend or a temporary correction.
According to him, clarity on long-term price stability is essential before any decision on reducing surcharges or additional fare components is taken.Naidu noted that the aviation sector has undergone significant pressure in the past few months due to fuel volatility and global uncertainty. He emphasised that any policy decision regarding fare reductions will depend entirely on whether fuel prices remain stable over an extended period.He added that once the government is confident that price stability is durable, it will engage with airlines to bring down surge charges and other additional costs currently being passed on to passengers. The minister reiterated that the objective is to ensure fair pricing for consumers while maintaining airline financial stability.In response to broader geopolitical disruptions, the government has already taken multiple measures to support the aviation industry. These include capping Aviation Turbine Fuel prices for domestic scheduled carriers, reducing airport charges, and extending credit support through the Emergency Credit Line Guarantee Scheme.Naidu further said that the government will continue to monitor the situation closely before making any firm policy changes. The final decision on fare adjustments, he stressed, will be taken only after confirming that the current decline in fuel prices is sustained and not temporary in nature.