Flight tickets likely to become costly as jet fuel prices surge
PTC News Desk: Flight tickets are set to become more expensive as oil companies announce an increase in aviation fuel costs. Aviation turbine fuel (ATF) prices have increased by Rs 1,318 per kilolitre, following a Rs 2,941.5 or 3.3% increase the previous month.
ATF rates are currently Rs 91,856.84 per kilolitre in Delhi, Rs 94,551.63 in Kolkata, Rs 85,861.02 in Mumbai, and Rs 95,231.49 in Chennai. The revised fares went into effect today, striking a huge blow to airlines.
Fuel costs are a major factor in determining the price of airline tickets. In reality, it is the second-highest cost of running flights, after labour costs. Fuel costs reduce airlines' profit margins, resulting in higher ticket costs.
The government oil companies, Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation Ltd (HPCL), update jet fuel and cooking gas prices on the first of each month.
Oil companies boosted ATF prices on November 1 after two monthly reductions of Rs 5,883 per kilolitre on October 1 and Rs 4,495.5 on September 1.
Commercial LPG rates, which are used in hotels and restaurants, have also increased for the sixth time in a row. The 19-kg cylinder now costs Rs 1818.50 in Delhi, Rs 1771 in Mumbai, Rs 1,927 in Kolkata, and Rs 1,980 in Chennai, an increase of Rs 16.5.
Prices have risen by Rs 172.5 per cylinder in five monthly rises since August, following four rounds of price reductions totalling Rs 148 per cylinder.
Commercial LPG pricing has reached its peak in the last year.
The price of domestic LPG or cooking gas is steady at Rs 803 per 14.2-kg cylinder.
- PTC NEWS
