Source The Hindu
India is witnessing a sharp escalation in fuel costs, with aviation turbine fuel (ATF) prices more than doubling to ₹2.07 lakh per kilolitre, marking one of the steepest increases in recent times. The sudden surge is expected to significantly impact the aviation sector, already grappling with fluctuating demand and operational costs.
Airlines are likely to feel immediate pressure as fuel accounts for a substantial portion of their expenses. Industry experts warn that the spike in jet fuel prices could lead to higher airfares in the coming weeks, potentially affecting passenger traffic and overall travel demand.
In a parallel development, the price of commercial LPG cylinders has been raised by ₹195.50. This increase is expected to hit restaurants, hotels, and small businesses the hardest, as they rely heavily on LPG for daily operations. The higher costs may eventually be passed on to consumers in the form of increased food prices.
The twin hike in jet fuel and LPG prices comes amid ongoing global energy uncertainties and supply chain disruptions. Analysts point to rising crude oil prices in the international market as a key driver behind the domestic fuel price adjustments.
While domestic LPG prices for households remain unchanged for now, concerns are growing over the broader inflationary impact of rising fuel costs. Economists suggest that sustained increases in energy prices could have a ripple effect across multiple sectors of the economy.
The government has yet to announce any immediate relief measures, but industry stakeholders are urging intervention to stabilize prices and ease the burden on businesses and consumers alike.
