Air India yet to decide on direct ATF import: Ajit Singh

August 28th, 2012 - 9:40 pm ICT by IANS  

New Delhi, Aug 28 (IANS) Air India has not yet decided about importing Air Turbine Fuel (ATF) directly, Civil Aviation Minister Ajit Singh said Tuesday.

The minister said this in a written reply in the Rajya Sabha on being asked whether Air India is going to save Rs.300 crore by direct import of the jet fuel.

ATF now sold in the country is nearly 50-60 percent costlier than the price in overseas markets like Bangkok, Singapore or Dubai as an additional 3-30 percent state sales tax are added to the original value of the fuel which is supplied by three state- owned oil marketing companies (OMCs). By importing directly, the airlines would save on fuel costs.

Five domestic airlines - Air India, Kingfisher, SpiceJet, Indigo and Go Airlines - have got permission to import ATF directly.

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