Airlines Seek Fuel Tax Relief As High Crude Prices Push Up Flight Costs

Indian airlines are seeking government relief as high crude oil prices put pressure on operating costs. The Federation of Indian Airlines has written to the government seeking measures including relaxation in VAT on aviation turbine fuel, lower fuel-related costs and a possible price stabilisation mechanism. Delhi and Maharashtra have already waived VAT, while airlines are seeking similar relief from other states. IndiGo has also raised fuel charges on domestic and international flights, citing higher crude prices and operational challenges. The government is now reconsidering a ₹10,000 crore price stabilisation fund that was proposed earlier during the Middle East crisis but did not attract any takers from airlines. The latest demands come as the aviation sector faces renewed pressure from rising fuel costs