Union Civil Aviation Minister Vayalar Ravi today urged states across the country to waive extra sales tax on aviation turbine fuel as Kerala State Government has done. He pointed out that this will help airlines to reduce passenger fares. Following sharp depreciation of rupee against dollar, state-run oil marketing firms had increased jet fuel price by 2.5 percent recently. Speaking at the Centenary of Civil Aviation celebration in Bangalore today he also informed that the quantum of additional funds needed to provide financial stability to the public carrier Air India will be decided in a week’s time.

The minister hoped that Air India’s situation would improve by next six months. Mr. Ravi expressed regret that the developing countries like India were suffering due to over-dependence on fuel imports, in the absence of alternative fuels or technology for transportation and industrial use. With crude imports accounting for major foreign exchange outgo, forex reserves are dipping despite higher remittances. The minister expressed concern that exports were unable to match imports, thereby widening trade and current account deficit.