Oil marketing companies announced a hike in aviation turbine fuel (ATF) on Thursday, which come into effect from today itself. According to reports, jet fuel prices have now reached an all-time high with the latest rise in prices and this may also lead to a steep rise in airfares too.
ATF will now cost Rs 1,41,232.87 per kl in Delhi, Rs1,46,322.23 per kl in Kolkata, Rs 1,40,092.74 per kl in Mumbai and Rs 1,46,215.85 per kl in Chennai. ATF prices were last revised on June 1.
Jet fuel prices are directly linked to global crude oil prices, which have risen sharply since the Russia-Ukraine war broke out in February this year.
Owing to the Coronavirus pandemic, airlines have suffered losses in the last two years and with the steady rise in jet fuel prices, their profit margins are also likely to be affected.
ATF makes up 30 per cent to 40 per cent of the airlines’ running cost.
Passengers will have to pay more for their air tickets. Airfares have risen sharply this year, as domestic airfares in May were up by 50 per cent to 75 per cent on popular routes as compared to the year-ago period.