ATF Prices in India: The Union Government has announced that the hike on aviation turbine fuel (ATF), or jet fuel, would not be as big as initially reported on media. Previously, it was suggested that the ATF prices would be increased by more than a double to more than Rs. 2 lakh per kilolitre due to the ongoing Middle East crisis.
A clarification has been issued by Indian Oil that the ATF prices have been increased by approximately 8.5 percent and not 115 percent as indicated previously. Presently, jet fuel is priced at approximately Rs. 1.04 lakh per kilolitre. However, this would still make domestic and foreign trips costlier.
Civil Aviation Minister Ram Mohan Naidu Kinjarapu appreciated that the Union Government only implemented a partial ATF price hike.
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ATF Prices in India-IndiGo Thanks Union Government
In a post on X, IndiGo thanked the Union Government saying the announcement offers greater stability for airlines and allowing us to pass on the benefits through more accessible and affordable travel for our customers.
Would The Revised Figures Help Aviation Industry And Passengers?
The announcement of an increase of just 8.5 percent and not 115 percent is a huge relief for both airlines and passengers. However, the continuous surge in the prices of ATF is a cause of big concern. For airlines, ATF prices are one of the biggest cost components and even marginal increases could dramatically increase operational expenses.
Indian states have been urged by Civil Aviation Minister Ram Mohan Naidu to reduce value added tax (VAT) on jet fuel so that the burden on passengers and airlines could be reduced. The Union Government is presently in discussions with several state governments to explore a wide range of possible relief measures.
As of now, the aviation industry is facing many challenges including longer flight routes because of airspace restrictions due to the Middle East crisis and a weakening rupee, contributing to higher operating costs and fuel consumption for carriers. This, in turn, makes domestic and international trips costlier for passengers.
