Express delivery firms urge cuts in fuel surcharge as crude prices fall
THE Express Industry Council of India (EICI), which represents the express delivery service firms has asked for withdrawal of fuel surcharge (FSC) levied by domestic airlines, reports New Delhi's IANS (Indo-Asian News Service).
The industry association made the demand citing sharp fall in global crude oil prices that have fallen nearly 35 per cent in the last year.
The trade body pointed that currently domestic airlines' FSC range between INR0.13 and INR16.50 per kilogramme as fuel surcharge.
"Currently, the ATF (air turbine fuel) price is 10 per cent lower than the 2008 price but the FSC charged is as high as INR16.50 per kilo for the cargo shipments," said EICI chief operating officer Vijay Kumar.
"In the past as well when fuel prices fell, airlines continued to increase their FSC. Airlines need to appreciate that FSC is purely a tool to mitigate volatility and cannot be part of cargo rates."
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