Jet fuel prices double: How much will Air India and Indigo flight tickets get costlier?
Air India and IndiGo flights are set to become more expensive due to steep hike in jet fuel prices. On Friday, the country's largest airline announced the imposition of a 'fuel surcharge' on all domestic and international flights.
Air India is levying a fuel surcharge of Rs 399 on domestic flight
Starting March 12, Air India is levying a fuel surcharge of Rs 399 on domestic flight tickets. Additionally, the airline has increased fares for international flights by approximately 15%. Due to the continuous rise in jet fuel prices, major airlines worldwide have also raised their ticket fares. Several airlines are even making plans to ground their aircraft.
IndiGo will levy surcharge ranging from Rs 425 to 2,300
On the other hand, IndiGo stated that jet fuel prices have surged by up to 85% due to the ongoing conflict involving Iran, the US, and Israel. Consequently, a surcharge ranging from Rs 425 to Rs 2,300 will be levied on domestic and international flight tickets.
The new ticket prices, inclusive of the additional fuel charge, will come into effect from March 14 midnight.
To minimize the burden on passengers, IndiGo has established charges based on varying distances. The company stated that a substantial hike in fares was necessary to recover the increased costs resulting from the rise in jet fuel prices. IndiGo added that it would continue to monitor the situation and make adjustments to these charges as and when required.
Jet Fuel Prices Have Nearly Doubled
Since the outbreak of the Iran-Israel conflict on February 28 and the subsequent disruption of the Strait of Hormuz route, the oil supply chain has been severely affected. Consequently, crude oil prices have been steadily rising. The price of Brent crude oil currently stands at $101 per barrel; recently, it had peaked at nearly $120 per barrel.
Meanwhile, in several countries, jet fuel prices have doubled since the commencement of the conflict. Prior to the war, jet fuel prices hovered between $85 and $90 per barrel; these figures have now surged to a range of $150 to $200 per barrel. Furthermore, tensions in the Middle East have led to the cancellation of over 40,000 flights worldwide to date.