Air fares likely to go up as OMCs increase jet fuel price by 14%

The price of ATF differs from state to state depending on local taxation.

Air travel may get more expensive after the government on September 1 announced a 14 percent hike in jet fuel or aviation turbine fuel (ATF) price. The increase takes the jet fuel price to Rs 1.12 lakh per kilolitre in Delhi, the highest level since December 2022.

The price of ATF differs from state to state, depending on local taxes.

The hike comes just ahead of the festival season, which typically sees higher air travel. In the last three months, ATF prices have gone by approximately 24 percent, which can significantly impact airlines’ operating costs and potentially lead to higher airfares.

As per state-owned fuel retailers, the ATF price on September 1 rose to Rs 20,295.2 per kilolitre and crossed Rs 1.12 lakh.

In Delhi, the price surged to Rs 1,12,419.33 per kilolitre, Rs 1,21,063.83 in Kolkata and Rs 1,05,222.13 in Mumbai.

This is the third straight month that the oil marketing companies (OMCs) have raised the rates of jet fuel. On 1 August, ATF price was hiked by a steep 8.5 percent. The jet fuel price price was increased by 7,728.38 per kilolitre in Delhi the national capital to Rs 98,508.26 per kilolitre.

Meanwhile, OMCs on September 1 slashed the price of 19 Kg commercial LPG gas cylinders by Rs 158. The latest price will be effective from today and the 19 Kg commercial LPG gas cylinders will be sold at Rs 1,522.5 in Delhi, according to the IndianOil website.

The commercial LPG gas cylinder will now cost Rs 1,522.5 in Delhi, Rs 1,636 in Kolkata, Rs 1,504.5 in Mumbai, and Rs 1,695 in Chennai.