“Airline Fares Could Increase as Oil Companies Hike Aviation Fuel Prices”

Digital Scoop India Team 3 days ago business news Leave a comment 8 Views

Flight tickets are expected to become more expensive following a hike in aviation fuel prices, announced by major oil companies. The price of aviation turbine fuel (ATF) has increased by ₹1,318 per kilolitre, marking a second consecutive rise after a ₹2,941.5 increase last month. The revised ATF prices now stand at ₹91,856.84 per kilolitre in Delhi, ₹94,551.63 in Kolkata, ₹85,861.02 in Mumbai, and ₹95,231.49 in Chennai. The new rates have come into effect immediately, further straining the aviation industry.

Fuel costs represent a significant portion of airline expenses, being the second-largest after labor costs. As a result, this increase in ATF prices is expected to reduce profit margins for airlines, leading to an inevitable rise in airfares. The price surge comes after the last hike on November 1, following two rounds of monthly price reductions in September and October, amounting to ₹4,495.5 and ₹5,883 per kilolitre, respectively.

The price hike was announced by state-run oil companies—Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation Ltd (HPCL)—which revise jet fuel prices on the first of every month. These adjustments often affect the airline industry, which is already grappling with rising operational costs.

Alongside the ATF price hike, the cost of commercial LPG, used by hotels and restaurants, has also increased for the fifth consecutive month. The latest hike is ₹16.5 per 19-kg cylinder, bringing the price to ₹1,818.50 in Delhi, ₹1,771 in Mumbai, ₹1,927 in Kolkata, and ₹1,980 in Chennai. Over the past five months, commercial LPG prices have risen by ₹172.5 per cylinder, following earlier reductions in prices. This marks the highest commercial LPG prices in the past year.

On the other hand, the price of domestic LPG, or cooking gas, has remained stable at ₹803 per 14.2-kg cylinder, offering some relief to consumers amid the rising costs of fuel and commercial LPG.

As oil prices continue to rise, both airlines and consumers are feeling the impact, making it increasingly expensive to travel and dine out.

Sources By Agencies

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