Airline tickets may become more expensive as oil companies raise jet fuel prices

---

#1

Flight tickets are likely to get costlier with oil companies announcing a hike in aviation fuel prices. The cost of aviation turbine fuel (ATF) has been hiked by Rs 1,318 per kilolitre, a month after it was raised by Rs 2,941.5 or 3.3%. The ATF prices are now Rs 91,856.84 per kilolitre in Delhi, Rs 94,551.63 in Kolkata, Rs 85,861.02 in Mumbai, and Rs 95,231.49 in Chennai. The revised rates have kicked in from today, dealing a major blow to the airlines.


Fuel expenses are a key component that determines the cost of flight tickets. In fact, it is the second-largest cost incurred for operating flights after labour costs. Fuel costs squeeze profit margins for the airlines and leads to higher ticket costs.


The 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.

Read: 

Get Ready For Longer Flights: Scientists Call For Slower Planes To Cut Emissions


Oil companies had last raised ATF prices on November 1 after two rounds of monthly reduction by Rs 5,883 per kilolitre on October 1 and by Rs 4,495.5 on September 1.


The rates of commercial LPG - used in hotels and restaurants - have also been increased for the fifth time in a row. It is now costlier by Rs 16.5 per 19-kg cylinder and is available at Rs 1818.50 in Delhi, Rs 1771 in Mumbai, Rs 1,927 in Kolkata, and Rs 1,980 in Chennai.


The prices have gone up by Rs 172.5 per cylinder in the five monthly increases from August, which follow four rounds of price reductions, amounting to a total price cut of Rs 148 per cylinder.


The commercial LPG rates are now at their highest in the past year.


The cost of domestic LPG or cooking gas remains unchanged at Rs 803 per 14.2-kg cylinder.