Jet fuel price this year has being going up. Hiked by a steep 6 per cent on firming international rates and since August the third straight increase in rates.
The rapid increase in jet fuel prices since August this year may cause air ticket prices going up by as much as 15 per cent. Airlines are aware and getting ready for a sharp raise in tickets sales after the spike in Aviation Turbine Fuel (ATF), with he latest which was on Sunday when oil marketing companies raised prices by 6 per cent.
After the third consecutive monthly hike, ATF will now begin to cost Rs 53,046 per kiloliter in Delhi, up Rs 3,026 per kl from Rs 50,020. The price was augmented by 4 per cent last month.
Jet fuel prices hiked by 6 per cent and Airlines are going through the double impact of augmenting fuel prices and weakening value of the rupee against the dollar. Apart from this, the government has also started to impose a regional connectivity tax of Rs 5,000 on all flights from August 1. Meantime, most airlines transfer this cost to passengers fearing running out of options to avoid the cost on the consumer.
Cheap crude prices till recently had allowed airlines to offer low-cost flight tickets to passengers, leading to over 20 per cent growth in local air traffic for several months in a row till this summer.
OMCs on Sunday hiked jet fuel prices by the steep 6 per cent on firming international rates, the third straight increase in rates since August.
The cost of ATF will now go for Rs 53,045 per kiloliter (kl) in Delhi, Rs 3,025 per kl more than Rs 50,020 previously, according to a price raise notification by Indian Oil Corp, the nation’s biggest fuel retailer. A record of the third consecutive monthly hike in ATF price, the last being by 4 per cent (Rs 1,910 per kl) on September 1.
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