The Indian government has given formal approval for its domestic carriers to directly import jet fuel in a move aimed at lowering the airlines' operating costs.
Carriers that wish to do so have to get a licence from the directorate general of foreign trade (DGFT), said the Ministry of Civil Aviation in a statement.
The ministry submitted a formal proposal to the Ministry of Commerce last week, seeking approval to allow local carriers to directly import jet fuel.
Air turbine fuel prices in India are up to 40% higher than those in the international market because of the high base price and even higher taxes, both at the national and state level. This has long been a major concern of local carriers.
This move could come as a relief to local carriers, such as struggling Kingfisher Airlines, most of which are operating on huge losses.