The Indian government has increased the prices of jet fuel and non-subsidised liquefied petroleum gas (LPG) by Rs 16.5 (€0.2) a cylinder.
This rise comes after an increase in global oil prices due to the ongoing troubles in Iraq, and directly follows the surge in petrol prices by Rs 1.69 a litre and diesel prices by 50 paise a litre.
Oil marketing companies are currently experiencing a daily revenue loss of Rs 271 crore (€33 million) on the sale of diesel, kerosene sold through the public distribution system and domestic LPG. Now that jet fuel prices are on the rise, this will in turn increase input costs for competing domestic airlines, with fuel accounting for up to 40% of their operational costs.
In the last financial year, airlines used approximately 5.5 million tonnes of Aviation Turbine Fuel (ATF), with the majority of sales conducted at airports in Delhi, Mumbai, Bangalore, Chennai and Hyderabad.