Fuel price cut by 1 paisa; Airlines hike rates on account of costly fuel

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The diesel and petrol prices were decreased by 1 paise per litre each, today. The revised fuel prices are applicable as of today.

IndiGo
Diesel and petrol prices were decreased by 1 paise per litre each today, but the increase in the cost of ATF has lead to an increase in the cost of flight tickets.
Metropolitan city Petrol price in Rupees
Delhi Rs.78.42
Kolkata Rs.81.05
Mumbai Rs.86.23
Chennai Rs.81.42
Bangalore Rs.79.70

 

The hike in fuel prices has also impacted the aviation industry. Around 40 per cent of the total airline cost depends on the cost of aviation turbine fuel (ATF) used by the airlines. IndiGo, which is the largest low-cost Indian airline, has increased its airline prices by Rs.200 for short distances which fall below 1,000 km, while cost of flights that cover longer distances within the country, over 1,000 km, will be increased by Rs.400, starting today. The increase in the cost of IndiGo flights due to increase in the fuel cost will be borne by the passengers under fuel surcharges. The revised cost of flights will be applicable on all the bookings made on or after today.

At the main Delhi and Mumbai aviation hubs, the cost of ATF has increased by approximately 25 per cent, which is considered to be the highest in the last three years. This 25 per cent increase in the ATF price has taken place over a period of 15 months, between January 2017 and May 2018. The hike in ATF price clubbed with the decrease in the value of Indian rupee has forced airline costs to increase.

Read more: Petrol, diesel prices touch record high after 11th consecutive price hike.

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