Passengers travelling by air might have to pay higher fares. This development comes as the oil companies have now increased the prices of air turbine fuel (ATF). It was increased by about 30 per cent within six months.
3.6% per kiloliter increase in Delhi
The prices of Air Turbine Fuel (ATF) also known as jet fuel, soared to INR 68,262 per kiloliter (KL) in Delhi on Thursday, July 1. Around 30 per cent of it was more expensive than in January 2021. Jet Fuel was reportedly at INR 50,979 in January this year.
According to state-run India Oil Corporation, prices were hiked by 3.6 per cent in the national capital. This is the second time within a time frame of 15 days that ATF prices increased on the back of increasing global oil prices.
Also Read: Indian Aviation Industry Seeking Tax Relaxations in Upcoming Budget
The rise in global oil prices
According to reports, the reason behind the ATF price hike is the increasing global oil prices.
In Mumbai, it stood at INR 66,482.90 per kl, up by INR 2,414.25 or 3.77 per cent.
While in Kolkata, aviation fuel prices increased by INR 2,289.38, up 3.27 per cent to INR 72,295.24 per kl. In Chennai, aviation fuel increased by INR 2,491.51 or 3.69 per cent to reach INR 70,011.44 per kl.
Prices could increase further
According to statistics, jet fuel prices may rise further as per the data in the last six months.
In January, ATF fuel price was INR 50,979 per kiloliter. Later, in February, it rose to INR 53,795 per kl, on March 1, INR 59,400 per kl, on April 1, ATF price was INR 58,374 per kl, whereas on May 1, it reached INR 61,690 per kl and in June, it was reported INR 64,118 per kiloliter.
Fuel rates play an important role in the aviation industry
According to aviation experts, ATF prices play an important role in the Indian aviation industry. Ticket prices are determined at this ATF and unavoidable charges. If ATF rates increase, ticket prices also go up. The number of passengers at Delhi Airport is currently declining due to lockdown and travel restrictions amid the ongoing pandemic.
International flights are closed until July 31
Directorate General of Civil Aviation (DGCA), in a circular released on Thursday, July 1, 2021, announced that the ban on international commercial flights has been extended until July 31, 2021. As per the announcements made earlier, the ban was supposed to end on June 30, 2021.
The number of air passengers has decreased after the second wave of the coronavirus hit the nation between February and March, as since then the cases were on the rise.
Also Read: Airlines Offering Cheaper Fares for Flights Out of Mumbai Between August-October
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