The news in India is about the increase in jet fuel prices. On Saturday, July 1, 2023, the price of Aviation Turbine Fuel (ATF) went up by 1.65%. This marks the first hike in jet fuel prices in four months due to a rise in global rates.
In Delhi, the price of ATF rose from Rs 89,293.09 per kilolitre to Rs 90,779.88 per kilolitre. Similarly, in Mumbai, the price increased from Rs 92,752.39 per kilolitre to Rs 94,229.19 per kilolitre.
This increase in jet fuel prices may create pressure on airlines’ operating costs and potentially lead to higher airfares. The exact extent of the airfare increase is uncertain at this early stage.
Several factors contribute to the rise in global jet fuel prices, such as the ongoing war in Ukraine and the reopening of economies worldwide. The conflict in Ukraine has disrupted oil supplies from Russia, a major crude oil producer. Additionally, the reopening of economies has boosted oil demand.
The duration of the current upward trend in jet fuel prices remains unclear. Nevertheless, airlines are likely to continue facing cost pressures in the near future.
