Massive Rise in Flight Ticket Costs, May Increase Further Know Reason!

In a recent development, the cost of jet fuel, also known as Aviation Turbine Fuel (ATF), has seen a significant surge, potentially impacting air travel costs during the upcoming festive season. Oil marketing companies (OMCs) have recently hiked jet fuel prices by a substantial 14% to ₹1.12 lakh per kiloliter in Delhi. This increase marks the highest level reached since December 2022 and represents a notable 24% rise in just two months.

As per a price notification from state-owned fuel retailers, the ATF price as of September 1st has climbed to ₹20,295.2 per kiloliter, crossing the ₹1.12 lakh mark. The current rates of jet fuel in Delhi stand at ₹1,12,419.33 per kiloliter.

What’s particularly concerning for travelers is that this increase isn’t an isolated event. It’s the third consecutive hike in jet fuel rates by oil companies. The upward trend began in July when ATF prices were increased by 1.65%, equivalent to ₹1,476.79 per kiloliter. In August, jet fuel costs saw a steep 8.5% surge, amounting to an increase of ₹7,728.38 per kiloliter in the national capital, bringing the price to ₹98,508.26 per kiloliter. This latest 14% hike in September only compounds the issue.

This surge in jet fuel prices is reflective of global trends. Internationally, jet fuel costs have been on the rise, closely tracking the firming up of global crude oil prices. Consequently, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), the state-owned oil companies, regularly revise ATF prices on the 1st of every month based on the average international price in the previous month.

For travelers and the aviation industry, the implications of this steady increase in jet fuel prices are clear. With air carriers facing higher operating costs due to elevated fuel expenses, there’s a strong possibility that flight ticket prices may also rise, potentially impacting travel plans and budgets.

In contrast, while jet fuel prices have been climbing, there have been some relief measures for consumers in the form of reductions in LPG (liquefied petroleum gas) prices. The central government, as a gesture to women in the country on the occasion of Raksha Bandhan, reduced the price of domestic LPG by ₹200. Additionally, OMCs have cut the price of 19 KG commercial LPG gas cylinders by ₹158, bringing the new price of a 19 kg commercial LPG cylinder to ₹1,522.