Air Travel Prices Set To Soar With 1.45% Hike In Jet Fuel Prices This December

Published on December 2, 2024

Jet fuel prices in Kolkata have risen for the second straight month, reaching ₹94,551.63 per litre, further driving up the cost of air travel.

Air travel remains one of the fastest and most convenient modes of transportation, yet its costs are rising steadily. Recent developments in the aviation industry have made flying a more exclusive experience. The price of aviation turbine fuel (ATF), commonly known as jet fuel, has gone up by 1.45%, contributing to the increased expense of air travel. This adjustment is part of the monthly fuel price update announced today.

Delhi, the capital of India and home to one of the busiest airports, has experienced a 1.45% increase in the price of aviation turbine fuel (ATF), with costs now rising to ₹1,318.12 per litre, as reported by IndiaTV News citing state-owned fuel suppliers.

In Kolkata, jet fuel prices have climbed for the second month in a row, reaching ₹94,551.63 per litre. Meanwhile, Mumbai and Chennai have also seen hikes, with ATF prices reaching ₹85,861.02 and ₹95,231.49 per litre, respectively. This follows a 3.3% rise (₹2,941.5 per litre) that took effect on November 1.

Earlier this year, fuel prices hit their lowest levels after two consecutive cuts, followed by this recent increase. The reductions included a 4.58% decrease (₹4,495.5 per litre) on September 1 and a 6.3% reduction (₹5,883 per litre) on October 1.

Who Oversees the Adjustment of Fuel Prices?

Each month, state-owned companies like Indian Oil Corporation, Bharat Petroleum Corporation Ltd., and others adjust the pricing of aviation turbine fuel (ATF) based on foreign exchange fluctuations and global fuel price trends. This adjustment may affect airfare prices, potentially impacting travelers, particularly those planning vacations.

While the cost of domestic LPG cylinders remains unchanged at 14 kg, state-run companies have increased the price of commercial LPG cylinders, which are used in businesses like hotels and restaurants, to 19 kg.

Bharat Petroleum (BPCL), India’s leading aviation fuel supplier, is responsible for the production, transport, and storage of jet fuel. Indian Oil (IOC), the country’s largest oil company, supplies a variety of aviation fuels and handles refueling for the Indian Defence Services and VVIP aircraft. Each month, HPCL, BPCL, and IOC revise ATF prices. Airlines may struggle to pass on these fuel price increases to customers due to price-sensitive passengers and competition from other modes of transport, even if they introduce fuel surcharges to cover the rising costs.

Due to the recent changes in fuel prices, there’s a high chance that your next flight booking could come with a higher price tag.