Speaking about aviation fuel, Patel sought to highlight how expensive it was in the country, resulting in this segment adding up to nearly 40 percent of costs, compared to 20-25 percent globally.

He said aviation fuel was costing Rs.38,000 per kilolitre here, as against Rs.24,000 in Singapore, Rs.25,000 in New York, Rs.24,500 in Hong Kong, Rs.25,000 in Bangkok, Rs.26,000 in Tokyo, Rs.26,500 in Paris and Rs.26,000 in Dubai.

Patel said while Andhra Pradesh was charging the lowest sales tax of 4 percent on jet fuel, it was 28-30 percent in Karnataka, Gujarat, Kerala, Tamil Nadu and West Bengal.

'A Rs.1,000 change in aviation turbine fuel price translates into Rs.300 crore increase or decrease in the cost of operations of the sector,' he said, adding that fuel prices have seen a rise of 99.6 percent over the past year or so.

The minister's presentation Thursday came against the backdrop of state-run Air India asking for fresh infusion of equity to stay afloat and private carriers asking the government to announce measures that will bring down their cost of operations.

According to private carriers, their collective losses went up to $2 billion in the past year, while Air India has also accumulated similar losses, of which $1 billion was in 2008-09.