Flights to get costly in India? Jet fuel prices breach Rs 2 lakh per kl mark for first time
&imwidth=600&imheight=450&format=webp&quality=medium "Flights to get costly in India? Jet fuel prices breach Rs 2 lakh per kl mark for first time")
Representative image. Photograph: (AFP)
India’s jet fuel hit a record Rs 2.07 lakh/kl after a 114% surge, driven by the West Asia war. With fuel accounting for about 40% of airline costs, airfares are likely to rise further.
Jet fuel prices on Wednesday (Apr 1) have breached the Rs 2 lakh per kilolitre mark for the first time since the war in West Asia began. The new Aviation Turbine Fuel (ATF) prices have been revised from April 1 in major cities. The fare has more than doubled to a record high of Rs 2.07 lakh per kilolitre. Meanwhile, commercial LPG rates were raised by Rs 195.50 per cylinder, amid the global energy crisis triggered by the Iran war.
According to a PTI report, this is the first time that ATF prices have crossed the Rs 2 lakh per kl-mark. The last time the rates peaked was after Russia’s invasion of Ukraine, when the prices hiked to Rs 1.1 lakh per kl due to a global oil price surge.
In Delhi, the ATF price was hiked by Rs 110,703.08 per kilolitre, or 114.5 per cent, to Rs 207,341.22 per kl, according to state-owned fuel retailers. Earlier, on March 1, the prices were hiked by 5.7 per cent (Rs 5,244.75 per kl) right after the war broke out on February 28, after US and Israeli forces launched strikes on Iran.
What has government said?
In a statement on X, the Ministry of Petroleum and Natural Gas said, “ATF prices in India were deregulated in 2001 and are revised on monthly basis based on a formula of international benchmarks. Due to the closure of Strait of Hormuz and extraordinary situation in global energy markets, price of ATF for domestic markets was expected to increase by more than 100% on 1 April.”
It added, “In order to insulate the domestic travel costs from the substantial increase in international prices, PSU Oil Marketing Companies of the Ministry of Petroleum, in consultation with Ministry of Civil Aviation, have passed only a partial and staggered increase of 25% (only Rs.15/litre) to the airlines. Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world.”
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Will flights get costly?
The sharp rise in prices is expected to further raise the flight fares, which have already suffered as airlines have to take longer routes for Western destinations due to airspace closure in the Gulf region. Fuel makes up about 40 per cent of an airline’s operating cost.
Meanwhile, prices of commercial LPG were hiked by Rs 195.50 on Wednesday (Apr 1). A 19-kg commercial LPG will now cost Rs 2,078.50 in Delhi, according to state-owned oil companies.
Why are global fuel prices surging?
Since the war broke out in West Asia after the US and Israel launched strikes on Iran on February 28, hostilities have continued to rise for a month now. Iran responded by retaliating across the Gulf, striking US and Israeli targets. Tehran has also blocked the strategic Strait of Hormuz, which is vital for global oil supplies. The Strait of Hormuz is the only maritime outlet for ports located in the Persian Gulf. Its blockage has significantly affected global energy supply, triggering a sharp rise in oil prices.
Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.
