The effect of the rise in the price of crude oil has started showing on the airline industry as well. Aviation Turbine Fuel (ATF), a fuel for aircraft in India, has hit an all-time high due to the spurt in crude oil prices. Due to this, 15 percent air travel can become costly in the next 15 days.
Price reached at one lakh: Rising crude oil prices after the Russia-Ukraine war have led to an increase in fuel prices around the world. At the same time, the price of ATF has gone beyond kiloliter at 1 lakh. This is the occasion in India when the price of ATF has increased so much. In August 2008, when the price of crude oil reached $147 per barrel, the ATF price in India was Rs 71,028 per kilolitre.
The new price of ATF was released by the oil distribution companies in Delhi on Wednesday, 16 March 2022. Compared to March last year, there has been a jump of 86 per cent in the price of ATF.
Fares may increase on these routes: According to aviation industry experts, airlines may include routes with high passenger numbers such as Delhi-Mumbai, Delhi-Bangalore, Delhi-Chennai, Delhi-Hyderabad and Delhi-Kolkata.
Whereas experts say that there is likely to be no change in the fares of routes like Delhi-Lucknow and Delhi-Jaipur because if the fares are increased by the airlines on these routes, then there can be a big impact on the number of passengers. Is.
Demand to bring ATF under GST: Ronjoy Dutta, CEO of India’s largest airline IndiGo, said, “We are in talks with the government to bring ATF under GST as it provides the benefit of input tax credit. We believe such measures are needed now more than ever to offset cost escalation and to make flights viable for airlines and affordable for customers.”