• Source:JND

Jet Fuel Price Hike News: In what could bring a spike in already steep international airfares, the price of Aviation Turbine Fuel (ATF), or jet fuel, for international airlines was increased by 5 per cent on Friday. This marks the second straight monthly rise after the surge in oil prices in the global market due to the closure of the Strait of Hormuz and heightening tension between the US and Iran.

However, no changes have been made to the ATF price for domestic airlines.

ATF Price Surge

Jet fuel in Delhi rose by $76.55 per kilolitre, or 5.33 per cent, to $1,511.86, state-owned oil companies said.

Delhi has India's busiest airport, and the recent development comes after prices doubled on April 1. On the same day, domestic airlines raised prices by 25 per cent to Rs 104,927.18 per kilolitre.

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International Airfare Could Rise

Post the oil price hike, the air carriers are likely to make some adjustments to increase ticket prices to cover the increasing expenses. This could bring more budgetary difficulty for passengers on top of the above-average airfares.

At the same time, prices for domestic air tickets are likely to be stable as the ATF prices have not been increased for them. However, airlines have not announced any changes in ticket rates yet. 

Airlines across the globe are facing major challenges amid energy supply chain disruption due to the ongoing war in the Middle East.

Jet Fuel Price Mirrors International Benchmark

In India, Jet fuel prices were deregulated more than two decades ago, and rates have since been aligned with benchmark international prices in accordance with written understandings with airlines.

However, due to the energy crisis that has erupted due to the ongoing war in the Middle East, triggering a massive rise in ATF prices, industry sources said governments and state-owned oil companies have decided to take a calibrated approach.

Also Read: Indian Airline Industry On Verge Of Collapse? Air India, IndiGo, SpiceJet Seek Jet Fuel Price Cuts Amid West Asia Crisis

While foreign and other airlines have to pay market rates, domestic airlines have been moderating their prices, PTI reported, quoting industry sources.


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