Jet Fuel Prices Hiked By 5.46% Amid Iran War. Will Flight Travel Get Costlier?

The price of aviation turbine fuel, or ATF, which is used by domestic airlines, was increased by 5.46 percent to ₹121.28 per litre on Tuesday, according to state-owned oil firms. This hike was in line with a rise in international benchmarks and comes on the back of a previous 5 rupee per litre increase on August 1. For airlines, ATF accounts for up to 40 percent of their operating costs, and this increase will add to the financial burden they already face.

Commercial LPG prices also saw a rise, with the 19-kg cylinder price going from ₹2,738 to ₹2,747.50 and 5-kg LPG cylinders increasing from ₹762 to ₹764. The hike follows two straight monthly reductions, with commercial LPG rates originally cut by Rs 192 per 19-kg cylinder on August 1 and then further reduced by Rs 183.5 on July 1.

These reductions were made following the West Asia crisis, which pushed rates to record highs in June. The West Asia conflict began in late February, causing commercial LPG rates to surge from Rs 1,740.50 in February to Rs 3,113.50 in June. ATF and LPG prices are revised monthly based on international benchmarks and foreign exchange rates, with rates varying by state due to local taxes like VAT. However, household cooking LPG rates remain unchanged at ₹942 per 14.2-kg cylinder.