Airfares likely to rise as jet fuel becomes dearer

IndiGo airlines is urging the government to bring ATF under GST

New Delhi: Soon air travellers will have to pay more as airfares are likely to rise due to a surge in jet fuel prices. On Wednesday, the fuel prices rose by 18 percent.

As fuel constitutes 40 percent of the operational cost of the airlines, the rise in its prices will ultimately lead to a surge in airfare.

Aviation Turbine Fuel cost

Jet fuel which is also known as Aviation Turbine Fuel (ATF) prices vary from city to city. Among metros, it is costly in Kolkata whereas, in Mumbai, it is available at the lowest price.

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The prices are also different between domestic airlines and domestic airlines on the international run.

ATF prices for domestic airlines

Metro cities Prices (in Rs)
Delhi110,666.29
Kolkata114,979.70
Mumbai109,119.83
Chennai114,133.73

ATF prices for domestic airlines on International Run

Metro cities Prices (in Rs)
Delhi1,102.97
Kolkata1,141.98
Mumbai1,096.43
Chennai1,096.92

Why did ATF prices surge?

Russia’s invasion of Ukraine is responsible for the spike in crude oil prices which had recently crossed the $130-mark. The surge in crude oil rates has resulted in the rise in the prices of ATF.

As the government does not intervene to cushion air travellers, ATF prices increased sixth time since January 2022.

Meanwhile, IndiGo airlines is urging the government to bring ATF under Goods and Service Tax (GST) so that input tax credit can be availed.

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