Your domestic flights in India are about to become costlier
What's the story
The Indian Oil Corporation Limited (IOCL) has announced a hike in the price of aviation turbine fuel (ATF) supplied to domestic airlines. The new rate, effective from today, is ₹115 per liter, up from the previous ₹110 per liter. This increase is likely to raise operational costs for domestic carriers as ATF is one of their biggest expenses.
Operational costs
Impact on airfares
The hike in ATF prices is likely to affect the operating costs of airlines.
However, it's important to note that ticket fares are determined by a variety of factors such as demand, competition, and capacity.
The increase in fuel prices could eventually lead to higher airfares for passengers, but the exact impact will depend on these other variables.
LPG price cut
Reduction in commercial LPG prices
In a separate development, the IOC has also reduced the price of commercial LPG cylinders from today. The move is aimed at providing relief to businesses such as restaurants, hotels, and caterers.
The cut marks the second straight monthly reduction. The earlier price hike was triggered by the West Asia crisis, which drove up international energy costs.
However, domestic LPG cylinder prices remain unchanged with a 14.2kg household LPG cylinder costing ₹942 in Delhi.