Air travel could become more expensive as the government has decided to increase the prices of Aviation Turbine Fuel (ATF), commonly known as jet fuel. Effective from August 1, 2024, the price of ATF has risen by 2 per cent, marking the second consecutive monthly hike. The price increase follows international oil price trends and is part of a regular revision by state-owned fuel retailers.
Jet Fuel Prices Increase By 2% Across Major Indian Cities
In Delhi, the ATF price has increased by ₹1,827.34 per kilolitre (kl), bringing the new rate to ₹97,975.72 per kl. In Mumbai, the price rose to ₹91,650.34 per kl from the previous ₹89,908.31 per kl. Other major cities have also seen increases, with Kolkata now facing a price of ₹1,00,520.88 per kl and Chennai at ₹1,01,632.08 per kl.
This price hike is not limited to domestic flights. International flights originating from India will also see increased fuel costs. The revised rates for international flights are now ₹74,462.50 per kilolitre (kl) in Delhi, ₹77,689.80 per kl in Kolkata, ₹74,405.65 per kl in Mumbai, and ₹74,053.02 per kl in Chennai. These prices vary depending on local taxes, which differ from state to state.
Direct Impact On Airfares
The ATF price hike could have a direct impact on airfares. Fuel costs are a significant portion of an airline’s operating expenses. Airlines may pass on this increased cost to passengers, resulting in higher ticket prices. This could be particularly noticeable during peak travel seasons or on popular routes.
The latest increase comes after a 1.2 per cent hike in July, which followed a steep 6.5 per cent reduction in June. The fluctuating prices reflect the volatility in global oil markets and the ongoing adjustments by the government in response to these trends.
Travellers are advised to keep an eye on airfare trends, especially if they are planning to book flights in the coming weeks. The revised jet fuel prices can be checked on the IndianOil website. It provides up-to-date information on the current rates across different cities.
As the aviation industry navigates these cost pressures, passengers might need to brace themselves for higher travel costs in the near future.
Cover Image Courtesy: Canva (Representative Image)
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