Government to Discuss Fuel Surcharge with Airlines Amid Sharp Increase in Aviation Turbine Fuel Prices
Government to Intervene in Fuel Surcharge Debate Amid Rising Aviation Turbine Fuel Prices
The Centre is likely to hold discussions with airlines after several carriers raised fuel surcharges following the recent increase in aviation turbine fuel (ATF) prices. According to reports, the government's focus remains on ensuring that passengers are not heavily burdened by higher fares.
The calibrated increase in ATF prices has already taken place, with the government allowing a broader 25 percent rise to support the aviation sector. However, for domestic operations, the effective increase was limited to around 8.5 percent to cushion the impact on passengers. Fuel accounts for nearly 40 percent of airlines' operating costs, making ATF a key pricing factor.
The revision in ATF prices has resulted in significant increases for international and domestic operations. ATF prices for international operations and chartered flights nearly doubled to Rs 2,07,341.22 per kilolitre from Rs 96,638.14, while domestic ATF rose to Rs 1,04,927.18 per kilolitre.
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Despite the Centre's effort to limit fare increases, IndiGo moved ahead with higher fuel surcharges. The airline shifted from a flat Rs 425 charge to a distance-based structure ranging between Rs 275 and Rs 950 for domestic routes, easing the burden on shorter journeys.
On international routes, however, the increase has been steep, with IndiGo raising fuel surcharges up to Rs 10,000 on long-haul sectors such as Europe, reflecting the sharp rise in ATF prices for overseas operations. These revised charges came into effect from April 2.
| Carrier | Original Fuel Surcharge | Revised Fuel Surcharge |
|---|---|---|
| IndiGo | Flat Rs 425 | Domestic: Rs 275 - Rs 950 |
| International: Up to Rs 10,000 |
The Centre's intervention is expected to push airlines to recalibrate pricing or roll back additional surcharges, helping contain fare increases as the situation continues to be closely monitored.
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