NEW DELHI:
Aviation turbine fuel (ATF) prices were increased by Rs 16 a litre from Thursday, adding further pressure on airline operating costs ahead of the festive season.
According to state-owned oil marketing companies, ATF for domestic airlines has been raised from Rs 121 to Rs 137 per litre.
The latest increase follows a hike of Rs 6.28 per litre, or 5.46 per cent, in September. ATF prices had also been increased by Rs 5 per litre in August.
Aviation fuel is one of the largest components of airline operating expenses and can account for up to 40 per cent of operating costs. The latest increase is therefore expected to add to the cost pressures faced by airlines.
Alongside the ATF hike, the price of a 19-kg commercial LPG cylinder was increased by Rs 62.50. The revision was made in line with firming international benchmarks.
Domestic LPG cylinder prices, however, were not changed.
The increase in aviation fuel comes at a time when the airline industry is entering a period of higher travel demand associated with the festive season. Any sustained rise in fuel costs could put pressure on airline fares and operating margins.