Airfares are expected to rise substantially as the Russia-Ukraine crisis puts oil on the boil. Jet fuel costs jump 18 % on Wednesday, the highest-ever increase, as the Russia-Ukraine war keeps oil on the boil. Because fuel expenses account for around 40% of airline expenditures, higher fuel prices will dampen their prospects of an early rebound with the start of normal international flights later in the month and the summer holiday season.
At Rs 114,979 per 1,000 liters (kilolitres or kl), Kolkata would be the most expensive airport for airlines to refuel, followed by Chennai at Rs 114,133 per kl. After the change, the price in Delhi was a touch lower at Rs 110,666 per kl, while Mumbai was the cheapest at Rs 109,119 per kl.
This is the sixth jump in jet fuel costs since January, coinciding with the rise in crude oil prices. It's because the government does not interfere to protect fliers. After all, aviation is mostly regarded as a realm of the wealthy.
This is in contrast to the prices of gasoline and diesel, which have not been updated since November 4, when the Centre and states slashed taxes to protect the consumer from the full impact of rising oil prices.
In recent days, the administration has informed Parliament that it will continue to defend consumers "to the greatest extent feasible" from the attack. Oil prices hit a 14-year high of $139 per barrel on March 7 as the United States hyped a ban on Russian oil and gas exports, raising worries of a massive supply disruption.
Prices have now stabilized, falling below $100 on Tuesday. However, on Wednesday, prices surpassed the century mark once more, adding to the downward pressure on goods pricing.
Jet fuel costs are changed on the first and sixteenth of each month, depending on the fuel's average worldwide price during the previous two weeks.