New Delhi: Air travel can get more expensive in the coming days as the price of Aviation Turbine Fuel (ATF) or jet fuel was increased by about 7% on Monday.
According to the price notification of the public sector petroleum companies, the price of aviation turbine fuel in the national capital has increased by Rs 3,663 to Rs 59,400.91 per Kilolitre (kl). Earlier on February 16, ATF prices in New Delhi was Rs 55,737.91 per (kl).
As on March 1, the rates revised by state-run oil marketing companies for ATF stood at Rs 57,519.65 per kl in Mumbai, in Chennai, the rate was Rs 60,758.61 per kl and in Kolkata, the rate for per Kilolitre ATF was at Rs 63,828.81.
Speaking to ETV Bharat, an airline executive said, "Fuel should be brought under the ambit of GST. This has been our long-pending demand. The ATF takes more than 30 % of the total cost of an airline."
According to an airline official, ATF prices in India are 45-50 % higher as compared to the international market.
Also Read: Domestic air travel demand contracts 41 pc in Jan
Notably, No-frills carrier SpiceJet in February reported a consolidated loss of Rs 66.78 crore for the December quarter of FY21 while India's largest airline IndiGo reported a consolidated loss of Rs 620.1 crore for the same quarter.
Last week, in a webinar by aviation consultancy firm Centre for Asia Pacific Aviation (CAPA) India, Kamal Hingorani, chief customer service officer at SpiceJet had said that his airline will increase services to states that reduce sales tax on ATF, and has done so in the case of ten airports across six states.
