Sky-High Costs: The Big Jet Fuel Hike
The price of jet fuel surged by 7.5%, translating to a rise of Rs 6,271.5 per kilolitre in the national capital, following increased international oil rates. Meanwhile, commercial LPG prices were reduced. These changes impact airlines heavily, as fuel constitutes 40% of operating costs.
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The aviation industry witnessed a significant hit on Tuesday as the price of jet fuel spiked by 7.5%. This increase of Rs 6,271.5 per kilolitre now sets the price at Rs 89,344.05 per kl in Delhi, following a boost in international oil rates post-Israel's attack on Iran.
This hike, equivalent to half the total reduction over the past three months, directly impacts commercial airlines, for whom fuel expenses comprise a substantial 40% of their operational budget.
Concurrently, a silver lining appeared as oil firms lowered the cost of commercial LPG by Rs 58.5 per 19-kg cylinder, marking the fourth consecutive price cut since April. Nonetheless, the consistent pressure on aviation fuel costs remains a looming challenge for the sector.
(With inputs from agencies.)
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