Flight tickets may soon get expensive as ATF prices rise 8.5% amid global tensions. Airlines like IndiGo and Air India add surcharges will your next trip cost more?
Rising Jet Fuel Prices May Increase Your Travel Costs
New Delhi: Air travel in India may soon become costlier as aviation turbine fuel (ATF) prices have been increased for April. The hike comes amid global tensions affecting oil markets. Although lower than earlier estimates. The rise is expected to increase airline costs, which could lead to higher ticket fares and added surcharges for passengers in coming days.
State run oil companies like Indian Oil Corporation have announced an increase of around 8.5% in aviation turbine fuel (ATF) prices for domestic flights. The earlier reports had suggested a much higher jump but those estimates were later revised.
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In Delhi, the price of jet fuel now stands at around ₹1.04 lakh per kilo-litre, which is much lower than the earlier estimate of over ₹2 lakh per KL.
The increase in ATF prices is mainly due to ongoing geopolitical tensions in West Asia, especially involving Iran, the US, and Israel. These conflicts have created uncertainty in global oil supply leading to price fluctuations. At the same time the Indian rupee has been under pressure, making fuel imports more expensive for airlines.
At Indira Gandhi International Airport the fuel prices have increased from ₹96,638 to ₹1,04,927 per KL. At Chhatrapati Shivaji Maharaj International Airport, prices have risen from ₹90,451 to ₹98,247 per KL.
In Kolkata, ATF now costs around ₹1,09,450 per KL, while in Chennai, it is approximately ₹1,09,873 per KL.
Civil Aviation Minister Ram Mohan Naidu said that the prices increase for the domestic airlines will be applied in a phased manner. About 25% of the hike will be implemented now to reduce the immediate burden on airlines and passengers. He also urged state governments to consider reducing VAT on jet fuel to provide some relief.
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Fuel makes up a large portion of airline costs nearly one-third to half of total expenses. As a result the airlines often pass on the increased cost to passengers. Major airlines like IndiGo and Air India have already introduced fuel surcharges ranging from ₹150 to $200.
This means passengers can expect higher ticket prices, fewer discounts, and possibly fewer flight options in the coming weeks. Overall, while the price hike is not as drastic as earlier expected, it is still likely to make air travel more expensive for many travellers.
