Aviation turbine fuel prices rise again, air travel might become more expensive in future
The price of jet fuel in Delhi has been increased to Rs 90,519.79 per kilolitre, up from Rs 86,038.16 per kilolitre
Expand your wallets, since flight travel may become more expensive! For the second time in February, oil marketing companies raised the price of aviation turbine fuel (ATF) on February 16.
The price of jet fuel in the national capital was increased to Rs 90,519.79 per kilolitre from Rs 86,038.16 per kilolitre. The price was increased to Rs 94,888.70, Rs 88,987.20, and Rs 93,371.18 per kilolitre in the other metro cities of Kolkata, Mumbai, and Chennai, respectively.
The increase is expected to have an impact on aviation companies' finances, which are already under strain due to high debt levels. Jet fuel costs are updated every two weeks by fuel retailers. Fuel-related expenses currently account for more than 30% of an airline's total operational costs.
India now has some of the highest ATF tax rates in the world, which drives up the gasoline cost component dramatically. The industry has been lobbying the government to include the fuel type in the scope of GST, similar to how 'Bunker Diesel,' which is utilised in the shipping industry, has been treated.
