The civil aviation ministry will try to convince the country's petroleum ministry next week to declare jet fuel as a "notified good," which would lead to exemption from high state taxes, providing some relief to battered local carriers.
Jet fuel makes up about half of an airline's costs.
Civil aviation minister Ajit Singh will meet petroleum minister M. Veerappa Moily early next week to discuss the matter, the former told reporters on Thursday.
State taxes of as much as 30 percent make jet fuel more than 50 percent expensive in India compared with the global average, and global airlines have often criticized such high taxation.
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