Jet Fuel Prices Rise: Increase in the price of jet fuel, will air travel become expensive now?

Jet Fuel Prices Rise: The price of jet fuel has increased. Fuel prices have increased to record highs in major cities of the country. The central government on April 1 said oil marketing companies (OMCs) have implemented the increase of 25% (only ₹ 15/litre) for airlines in a partial, phased manner in consultation with the Ministry of Civil Aviation. The central government has clarified that the entire increase in jet fuel (ATF) prices on overseas routes will be paid in line with the rates prevailing in other parts of the world, and will have no impact on domestic airfares.

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A post issued by the Ministry of Petroleum and Natural Gas said, “ATF prices in India were deregulated in 2001 and are revised monthly based on a formula of international standards. Due to the closure of the Strait of Hormuz and the extraordinary situation in global energy markets, the price of ATF for domestic markets was expected to increase by more than 100% on April 1.”

For the first time in history, the price of jet fuel has crossed the figure of ₹ 2 lakh per kilolitre, due to which the possibility of plane tickets becoming very expensive in the coming days has increased.

Almost 40% of the total expenditure of airline companies is spent on fuel (ATF), so when fuel is expensive, companies have no option but to pass the burden on passengers.

Due to Iran-America-Israel tensions, volatility in the global oil market has increased, which has affected supply and increased prices. Although the increase is small, it will still put pressure on airlines as jet fuel forms a major part of their expenses.

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