NEW DELHI, April 8 -- The Centre is seeking state-level tax cuts on jet fuel as a surge in global prices and disruptions in West Asia squeeze airline finances.

The ministry of civil aviation is in discussions with state governments to reduce tax on aviation turbine fuel (ATF), currently ranging between 1% and 29%, a senior ministry official said. "We are writing to states to bring down state tax on jet fuel. It would give some relief considering the price hike of fuel in recent times," the official said.

Fuel is the single largest expense for airlines, accounting for 35-40% of operating costs. Prices have risen sharply in recent weeks amid the conflict in West Asia, driving up costs for carriers.

Jet fuel prices climbed to $209 per bar...