Jet fuel prices or aviation turbine fuel (ATF) were hiked on Monday, following a surge in global crude oil rates due to the ongoing war in West Asia. That would normally mean higher airfares, but this time, domestic travellers may not feel the full impact right away.
Earlier in the day, data released by Indian Oil Corporation (IOC) had indicated a steep jump in aviation turbine fuel (ATF) prices, with rates more than doubling.
That raised concerns of a sharp rise in ticket prices.
However, the numbers were revised soon after, with the government clarifying that .
According to the Ministry of Petroleum and Natural Gas, oil marketing companies have implemented a partial and staggered increase of about Rs 15 per litre for domestic airlines, while international routes will bear the full increase in line with global fuel prices.
For passengers flying within India, the immediate impact is expected to be limited.
Fuel is one of the biggest costs for airlines, but since only a part of the increase has been passed on, airlines are unlikely to sharply raise ticket prices in the near term. Any fare changes, if required, are expected to be gradual.
The move is aimed at preventing a sudden spike in travel costs and maintaining stability in the domestic aviation market.
The situation is different for international travel.
Flights operating on overseas routes are more directly linked to global fuel prices, which means airlines are likely to feel the full impact of the increase. If crude oil prices remain elevated, passengers travelling abroad could see higher fares or additional fuel surcharges in the coming weeks.
The increase in jet fuel prices is driven by rising global crude oil rates amid geopolitical tensions involving Iran, the United States and Israel.
Concerns around disruptions in the Strait of Hormuz, a key oil transit route, have pushed crude oil prices above $100 per barrel, directly impacting aviation fuel costs.
A weaker rupee has further added to the pressure, as fuel imports become more expensive.
The situation remains fluid.
Oil marketing company sources told India Today TV that ATF prices could be revised further in phases if required, depending on how the West Asia conflict evolves.
They also indicated that prices of premium petrol and diesel variants could see phased increases if the crisis persists.
The evolving situation in West Asia means further calibrated price hikes remain a possibility.
For now, domestic flyers have been shielded from the full impact, while international travellers are more exposed to rising costs.
It remains to be seen how the hike impacts ticket prices.