Jet Fuel Price Hiked 5.46%, Commercial LPG Cylinder Cost Rises

Aviation turbine fuel prices for domestic airlines were increased by 5.46 per cent on Tuesday, marking the second consecutive monthly hike, while the cost of a 19kg commercial LPG cylinder rose by Rs 9.50. The changes, effective September 1, are in line with international benchmark prices and are expected to add to the operating costs of airlines and commercial establishments. According to state-owned oil marketing companies, the price of aviation turbine fuel, or jet fuel, was raised by Rs 6.28 per litre to Rs 121.28 per litre for domestic carriers. This follows a Rs 5 per litre increase implemented on August 1. The consecutive hikes are significant as jet fuel typically accounts for 35 to 40 per cent of an airline's total operating expenditure in India. Industry analysts note that while airlines may attempt to absorb some of the increased costs, the pressure on profit margins could lead to higher airfares or the reintroduction of fuel surcharges, particularly during the upcoming festive season. However, final ticket prices are also influenced by passenger demand, competition, and route capacity.