NEW DELHI: Flying could soon get more expensive. Oil marketing companies on Thursday hiked aviation turbine fuel (ATF) by 16.3% which now, for instance costs an all-time high of Rs 1.41 lakh per kilo litre (kl, or 1,000 litres) in Delhi. Coupled with a weaker rupee, the operating cost for Covid-ravaged airlines has shot up, some of who now say airfare hike is inevitable to survive. SpiceJet CMD Ajay Singh, for instance, has termed these prices “not sustainable” and said a “minimum 10-15% increase in fares is required”. Comments from other airlines have been sought and are awaited.
High base price of ATF — its prices kept rising even as politically sensitive petrol and diesel are spared hikes — coupled with even higher rates of VAT and excise duty has made jet fuel for domestic flights in India among the most expensive globally. Neither have states with biggest aviation hubs like Delhi and Mumbai cut taxes, nor has the Centre given any excise relief so far.