State-run oil marketing companies (OMCs) today slashed aviation turbine fuel (ATF) prices by 4.3 per cent, but passengers are not likely to get any benefit from the move by way of cheaper tickets. Airlines are in no mood to pass on the benefit of reduced costs to consumers, saying that the cut in ATF prices was a “token gesture” and would not alleviate airline losses, likely to be around Rs 8,000 crore this fiscal.

State-owned Air India-Indian indicated that it had virtually ruled out any reduction in fuel surcharge imposed on passengers. The UB-group owned Deccan-Kingfisher combine while saying it was still reviewing the matter, also hinted that no surcharge-cut should be expected. SpiceJet also stressed that there was no question of a roll-back on prices.

“Our last increase in fuel surcharge by Rs 300-Rs 550 has offset only 30-35 per cent of the increase in operating costs that we have had to bear as a result of constant ATF price hikes,” an Air India spokesperson said, indicating that no reduction in fuel surcharge was to be expected.

“Fuel prices have shot up by nearly 50 per cent in three months and a marginal reduction of 3-4 percent would not make any difference,” Samyukth Sridharan, chief operating officer of budget airline SpiceJet, said. While Kingfisher-Deccan is yet to take a decision on reducing fuel surcharges, sources said a slash in ticket prices was highly improbable.

Following a five per cent cut in customs duty on ATF by the government yesterday, public sector oil companies today cut jet-fuel prices by Rs 3,239 per kilolitre (kl). ATF in Delhi will now cost Rs 66,226 per kl, down Rs 3,000 per kl, while in Mumbai the price has been cut by 4.36 per cent to Rs 68,626 per kl, an Indian Oil official said

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