Jet fuel import may not take off in a big way

New Delhi: The ministerial panel on aviation on Tuesday recommended allowing carriers to import jet fuel but ground realities may not allow the move to take off in a big way as was the case in 1998. The recommendation comes after intense lobbying by loss-making carriers, led by Vijay Mallya's Kingfisher Airlines.
Airlines hope to lower 10%-15 % of their fuel bill that accounts for 40% of their cost. The saving will be mainly the high sales tax of 8%-25 %, which makes jet fuel in India globally among the most expensive even though it is priced at international parity. The first disadvantage for carriers would be the loss of a credit period of up to 60 days now. Carriers would have to pay upfront, probably in dollars , for imports. But aviation minister Ajit Singh said, "We will try to see whether some kind of credit arrangement can be made"
Besides, imports would have to be made in a minimum parcel size of 10,000-20 ,000 tonne. The fuel would then have to be unloaded and stored in specialized storage tanks at ports equipped to handle fuel.
08/02/12 Sanjay Dutta/Times of India

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Categories: Foreign Feb 2012, ndian Aviation- In General Feb 2012, New Feb 2012