Fuel-LPG Crisis Update: Union Civil Aviation Minister Ram Mohan Naidu has cautioned that airlines may encounter new cost pressures starting April 1st due to the increasing prices of aviation turbine fuel (ATF). ATF is a refined petroleum product essential for powering aircraft and usually constitutes 35 to 45 percent of an airline’s operating expenses.
Any increase in crude oil prices leads to a direct rise in ATF rates. This situation places additional strain on airline costs, which ultimately results in higher ticket prices. As reported by NDTV, Naidu mentioned, “ATF prices are set on the first of each month. Thus, the effects may be noticeable from April 1st.” He also noted that talks with airlines are already in progress.
Recognizing the financial strain on airlines, Naidu stated that the government is actively engaging with airlines and various ministries to evaluate the situation. “We are in ongoing discussions with airlines. Our primary concern in the Middle East is to ensure safe operations,” he remarked.
The government is taking measures to protect passengers.
The government has made it clear that safeguarding passengers from abrupt fare increases is a top priority. “We will certainly explore the best options available for the benefit of passengers,” Naidu stated. However, he acknowledged that there will be an impact. He emphasized that the ministry’s goal is to ensure that this burden does not disrupt operations.
Major domestic airlines have already begun implementing fuel surcharges to manage the rising fuel costs. Air India and Air India Express have introduced a surcharge of Rs 399 on domestic flights. For international routes, these surcharges vary from approximately Rs 830 for West Asia to Rs 16,600 for long-haul destinations.
IndiGo has implemented a fuel surcharge ranging from Rs 425 to Rs 2,300 per sector, depending on the distance, including a Rs 425 charge on domestic routes. Similarly, budget airline Akasa Air has introduced a surcharge ranging from Rs 199 to Rs 1,300 per sector, depending on the flight duration. The government is closely monitoring these changes to ensure that ticket prices remain affordable for passengers.
Hike in petrol prices
On Friday, the price of premium, or high-grade, petrol was increased by Rs 2 per liter. While the wholesale price of diesel sold to industrial users has risen by approximately Rs 22 per liter. This increase comes amid a surge in global oil prices due to the ongoing conflict in the Middle East. However, the relief is that the prices of regular petrol and diesel will remain unchanged.
