Oil companies have recently raised the jet fuel prices by 50 per cent, also simultaneously leading to a rise in international rates, shoving up the cost for aviation that resumed passenger flights after an interval of two months.
Fuel prices, domestically, have already started increasing in parity with the recovery in the international oil markets. Crude oil prices went up in a month, changing the rates for refined products such as diesel, petrol, cooking gas and jet fuel in the international market.
State oil companies have also raised the bar of their prices of non-subsidised gas by Rs. 11.5 per cylinder. And any refill in the capital will cost Rs.593 per cylinder. The companies also have put a halt on showcasing prices for subsidised cooking gas. The rates have been increased when the government instructed last year to shoot prices at least by Rs.4 every month.
According to sources, most budget airlines, fuel contributes 40% of their total cost. Cost expansion would increase challenges for airlines already facing a crisis from the ongoing pandemic and lockdown.