Oil marketing companies (OMCs) increased aviation turbine fuel (ATF) prices by an average of Rs 1476/KL on July 1. This comes after four consecutive months of rate cuts.

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From today, jet fuel in Delhi will cost Rs 90,779.88/KL, up from Rs 89,303.09/ KL last month. ATF price in Kolkata has seen a sharp uptick reaching Rs Rs 99,793.45/KL from Rs 95,963.95/KL earlier. In Mumbai and Chennai, jet has been priced at Rs 84,854.74/KL and Rs 94,530.51/KL, respectively.

The hike in jet fuel prices comes at a time when air fares have been skyrocketing. Whether or not the move will lead to a further increase in air ticket prices remains to be seen.

However, earlier on June 14, the Indian government had claimed that flight ticket prices on some routes have dropped as much as 56 percent in recent days.

Sources had told CNBC-TV18 that the decline in airfares came against the backdrop of the recent interventions and meetings held by the government. They said the government was monitoring and holding daily meetings on the issue.

“Rise in airfares has been mostly seen on select routes that were earlier being serviced by Go First. A meeting with the airlines was held on June 5, 2023, where airlines were strictly advised to self-regulate fares on certain select routes that have seen considerable surge pricing of late. A mechanism for ensuring reasonable pricing within the high RBDs (Reservation Booking Designator) will be devised by airlines,” government sources had then said.