Government scraps fuel throughput charge 

January 3, 2020

The central government has issued a circular dated January 8, 2020 ordering the scrapping of fuel throughput charge being levied on airport operators across all airports, heliports and airstrips in the country with immediate effect. The government has also asked the Airports Economic Regulatory Authority of India and the Ministry of Civil Aviation to compensate the private airport operator or the Airports Authority of India (AAI) by suitably recalibrating other tariffs during the determination of airport tariff. The decision has been taken keeping in view global best practices being followed at airports wherein levying a double charge by way of land rental on fuel suppliers (for the use of land at the airport) and a market access or concession fee (for providing commercial opportunity when there is no underlying tangible service being rendered) by the operator is avoided.