Airfares are likely to go up as oil companies have increased Aviation Turbine Fuel (ATF) prices by 10 per cent starting April 1, thus putting burden on the airline companies. Public sector oil marketing companies such as Indian Oil, HPCL and BPCL have revised ATF prices upward on an average of Rs 2750 per kilolitre.
As per the announcement on Tuesday, ATF in Mumbai would cost Rs 30,785 per KL compared to Rs 28,023 a KL, up 9.85%. ATF prices in Delhi have gone up from Rs 27,274 to Rs 29,926 per KL, up 9.72%.
Airline officials said they will have to pass on the additional burden on passengers. While tickets booked in advanced would continue to be cheaper, ticket purchases close to the date of travel could cost more. However, the companies may not immediately announce a fare hike to pacify passengers, but would hike the ticket prices, gradually.