new Delhi. India’s oil marketing companies on Friday increased the prices of Aviation Turbine Fuel (ATF) due to rising crude oil prices. The price of jet fuel has increased from Rs 1,10,666.29 per kiloliter to Rs 1,12,924.83 per kiloliter (KL) in the national capital.
In other metro cities of Kolkata, Mumbai and Chennai, the price increased to Rs 1,17,353.71, Rs 1,11,690.61 and Rs 1,16,583.71 per kiloliter, respectively.
Bhanu Patni, Senior Analyst, India Ratings and Research said, “ATF prices have increased by almost 50 per cent since the beginning of the year, mainly due to the Russia-Ukraine war.”
“The proliferation of jet fuel has also increased due to an increase in global demand.”
Notably, the increase is expected to impact airfares as well as the financials of airlines which are under stress.
Alok Bajpai, Group CEO and Co-Founder, AxisGo said, “Flight prices on some popular routes have doubled in the last few weeks due to the costlier ATF.
“Travellers will have to make their advance bookings if they want to get the best possible price. Hopefully the high demand for summer travel that the industry is seeing will help offset the cost of fuel.”
In India, ATF revises the prices of jet fuel on a fortnightly basis.
Currently, fuel based expenses account for more than 35 per cent of an airline’s total operating cost.
India currently has some of the world’s highest rates of taxation on ATFs, which largely increases the fuel cost factor.
The industry is urging the Center to include the fuel type in the purview of GST, given to ‘bunker diesel’, which is used in the shipping sector.
—AnyTV News
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