Flight Tickets To Get More Expensive As Jet Fuel Prices Reach New Highs

The price of aviation turbine fuel (ATF) in India has reached a new high after being raised by 5% in New Delhi. According to some media reports, the ATF price in the national capital is currently ₹1,23,039 per kilo or ₹123.03 per litre.

Jet fuel prices have risen every two weeks since the beginning of 2022. ATF costs have increased by more than 50% since January 1, 2022.

According to the survey, the cost of jet fuel accounts for up to 40% of the entire cost of the airlines. The current increase in jet fuel prices is projected to raise the cost of airline tickets.

On March 16, jet fuel prices were increased by the biggest increase of 18.3 per cent. Later that month, on April 1, ATF prices were raised by 2% again. Prices were raised by 3.22 per cent on May 1.

Latest Aviation Turbine Fuel (ATF) Prices In India

ATF in Mumbai now costs ₹1,21,847.11 per kl, while it is priced at ₹1,27,854.60 in Kolkata and ₹1,27,286.13 in Chennai. Rates differ from state to state, depending on the incidence of local taxation. Fuel rates have been increased in India because energy prices globally have risen on the back of supply concerns following Russia’s invasion of Ukraine and demand returning after being hit by the pandemic. India is 85 per cent dependent on imports to meet its oil needs.

While oil prices have eased from a near 14-year high of USD 140 per barrel, it continues to trade above USD 100. On May 16, Brent – the world’s most used benchmark – was trading at USD 109.76 per barrel. To compound things, the rupee has depreciated against the US dollar, making imports costlier. It closed at an all-time low of 77.55 a US dollar on May 13. Forex markets were closed on Monday on the account of Buddha Purnima.

Jet fuel, which makes up for almost 40 per cent of the running cost of an airline, has this year surged to new highs. ATF prices have increased every fortnight since the start of 2022. In the nine hikes beginning January 1, ATF prices have been increased by Rs 49,017.8 per kl (Rs 49 per litre) or nearly 55 per cent. 

(With inputs from PTI)