Flight tickets may get costlier as oil companies raise aviation fuel prices

Flight tickets are set to become more expensive with oil companies announcing an increase in aviation fuel prices. The cost of aviation turbine fuel (ATF) has risen by ₹1,318 per kilolitre, following a previous hike of ₹2,941.5 or 3.3% last month. The new ATF prices are now ₹91,856.84 per kilolitre in Delhi, ₹94,551.63 in Kolkata, ₹85,861.02 in Mumbai, and ₹95,231.49 in Chennai. These revised rates are effective immediately, impacting airline operations significantly.

Fuel expenses play a crucial role in determining flight ticket prices, being the second-largest cost for airlines after labor expenses. Increased fuel costs squeeze profit margins, which in turn leads to higher ticket prices for passengers.

Government oil firms Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation Ltd (HPCL) revise jet fuel and cooking gas prices on the first of every month.

Oil companies had previously raised ATF prices on November 1 following two months of reductions – ₹5,883 per kilolitre on October 1 and ₹4,495.5 on September 1.

Additionally, the prices of commercial LPG – used in hotels and restaurants – have been increased for the fifth consecutive month. The price is now higher by ₹16.5 per 19-kg cylinder, costing ₹1,818.50 in Delhi, ₹1,771 in Mumbai, ₹1,927 in Kolkata, and ₹1,980 in Chennai. The cumulative increase in the past five months is ₹172.5 per cylinder, following four rounds of price cuts that totaled ₹148 per cylinder. Commercial LPG rates are now at their highest in the past year.

Meanwhile, the cost of domestic LPG or cooking gas remains unchanged at ₹803 per 14.2-kg cylinder.