Breaking
  • Gunman opens fire in a customer service center killing two people in Moscow
X
  1. You Are At:
  2. English News
  3. Business
  4. Air travel may become costlier as jet fuel prices soar

Air travel may become costlier as jet fuel prices soar

According to Indian Oil Corporation Limited (IOCL), the largest supplier of ATF in the country, on Thursday reported price hiked by 3.6 per cent in the Delhi region.

India TV Business Desk India TV Business Desk
New Delhi Published on: July 01, 2021 14:56 IST
Air travel may become costlier as jet fuel prices soar
Image Source : ANI

Air travel may become costlier as jet fuel prices soar

Prices of Air Turbine Fuel (ATF), also known as jet fuel, soared to Rs 68,262 per kiloliter (KL) in Delhi on Thursday, around 30 per cent more expensive than in January 2021. Jet Fuel was reportedly at Rs 50,979 in January 2021.

According to Indian Oil Corporation Limited (IOCL), the largest supplier of ATF in the country, on Thursday reported price hiked by 3.6 per cent in the Delhi region.

The reason behind the ATF price hike is the increasing global oil prices.

"ATF prices hiked in Delhi by 3.6 per cent and stood at Rs 68,262.35 per kl, in Kolkata it is increased by 3.27 and is at Rs 72,295.24 per kl; it increased by 3.77 per cent and stood at Rs 66,482.90 in Mumbai and in Chennai it is at Rs 66,482.90 per kl" IOCL said.

According to available data, jet fuel was increased by about 30 percent within six months,

"On January 1, ATF fuel price was 50979 per kiloliter, February 1 it was reported Rs 53795 per kl, on March 1, Rs 59400 per kl, on April 1, ATF price was Rs 58374 per kl, where on May 1, it was Rs 61690 per kl and June 1 it was reported Rs 64118 per kiloliter," the data showed.

Aviation experts say that ATF prices play an important role in the Indian aviation industry. Ticket prices are dependent on ATF and other unavoidable charges.

"If ATF prices are hiked, then obviously air tickets are going to go up," a Delhi-based aviation expert told ANI.

Delhi airport released a white paper on passengers growth on Thursday which showed a significant drop in passenger traffic due to lockdown and travel restrictions imposed by many states owing to the second wave of the COVID-19 pandemic.

"Delhi Airport has started witnessing growth in passenger numbers slowly but steadily post relaxation in lockdown and travel norms by various states in June. Most of those who flew were in visiting family and friends category (48 per cent) which was followed by vacation (25 per cent) and Business travellers (19 per cent)," Delhi Airport said.

Additionally in June 2020, after the gradual lifting of the two-month-long country-wide lockdown, the majority of air travellers were of visiting family and friends category followed by Business travellers. "While those going for vacation were only 2 per cent. During pre-COVID times (in June 2019), around 44 per cent flyers were vacationers, while 41 per cent were in visiting family and friends category." Delhi Airport said.

Similarly, the number of international travellers grew from around 4,500 per day in mid of May to nearly 7,500 per day in June end.

"Delhi Airport has witnessed over three times rise in domestic passenger numbers from around 18,000 per day in mid of May 2021 to over 62,000 per day at the end of June 2021." It added.

The international commercial flights will remain suspended till July 31, 202,1 due to the COVID-19 pandemic. 

(With ANI inputs)

ALSO READ: PPF, NSC, Kisan Vikas Patra, other small savings interest rates unchanged for Q2

ALSO READ: LPG price hiked by Rs 25, costs Rs 834/cylinder in Delhi, Check rates in your city

Latest Business News

Write a comment