Tezzbuzz Desk- Once again a sharp increase in the prices of aviation fuel (ATF) has been recorded in the country. Due to instability in the international market and ongoing tension in West Asia, there has been a big jump in the prices of jet fuel in India. However, the government has tried to provide partial relief by not putting the entire burden of this increase on common air passengers.
According to state-run oil company Indian Oil, the new rates have been mainly implemented on non-scheduled and charter flights. Initially the situation regarding this was not clear, but later it was made clear that at present these increased prices will not have a direct impact on scheduled domestic flights.
Since April 1, the price of ATF in Delhi has increased to Rs 2,07,341.22 per kilolitre, which was Rs 96,638 last month. Similarly, it has increased to Rs 2,05,955.33 in Kolkata, Rs 2,14,597.66 in Chennai and Rs 1,94,968.67 per kiloliter in Mumbai. This increase is considered to be the biggest in recent months.
Earlier in March too, the prices of jet fuel had increased, due to which the price of ATF for both domestic and international flights had reached above Rs 1 lakh per kilolitre.
The Petroleum Ministry has said in its statement that ATF prices in India have been outside government control since 2001 and are revised every month based on the international market. According to the ministry, due to tensions in the Strait of Hormuz and the unusual situation in the global energy market, there was a possibility of a price increase of more than 100 percent this time.
Despite this, the government has taken a balanced approach to keep domestic air travel affordable. Airlines have been impacted only by a limited and phased increase of about 25 per cent (about Rs 15 per litre) following negotiations between oil companies and the civil aviation ministry.
However, for international flights, airlines will have to pay the full increased price, as is the practice globally. In such a situation, its impact on international airfares may be seen in the coming time.
Overall, the rising prices of jet fuel remains a challenge for the aviation sector, but the steps taken by the government have definitely provided some relief to domestic passengers.
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