Air fares are set to rise sharply as jet fuel prices jumped 18% on Wednesday, marking the sharpest-ever increase, as the Russia-Ukraine conflict keeps oil on the boil.
Since fuel costs make up about 40% of costs for airlines, costlier fuel will hit their hopes of an early recovery with the resumption of regular international flights later this month and the summer holiday season.
At ₹1,14,979 per 1,000 litres (kilolitres or kl), Kolkata would be the costliest airport for the carriers to tank up, followed by Chennai where the fuel cost ₹1,14,133 per kl. The price in Delhi was a tad lower at ₹1,10,666 per kl, while Mumbai the cheapest at ₹1,09,119 per kl after the hike.
This is the sixth increase in jet fuel prices since January, in line with crude’s rally. This is because the government does not intervene to cushion flyers, since aviation is predominantly considered as a domain of the well off.
It is unlike petrol and diesel, the prices of which have not been revised since November 4, when the Centre and states reduced taxes to cushion consumers from the full impact of rising oil prices.
The government in recent days has told Parliament it will continue to protect consumers “to the extent possible” from the onslaught.
Oil prices rose to their highest in 14 years at $139 per barrel on March 7 as the US talked up a ban on Russian oil and gas exports to spark fears of a major supply disruption. Prices have since cooled down, dropping below $100 on Tuesday. But on Wednesday, the prices again rose past the century, continuing the pressure on product prices.
Jet fuel prices are revised on the 1st and 16th of every month, based on the fuel’s average international price in the preceding fortnight.
