IndiGo revises fuel surcharge on domestic tickets from April 2 after govt hikes jet fuel price

IndiGo revises fuel surcharge on domestic tickets from April 2 after govt hikes jet fuel price

IndiGo will levy revised fuel charges ranging from Rs 275 to Rs 950 on domestic tickets from April 2, the airline said in a statement Wednesday, amid a rise in aviation turbine fuel (ATF) prices.Earlier in March, IndiGo had said it would levy a fuel surcharge ranging from Rs 425 to Rs 2,300 on its domestic and international flights after a sharp increase in ATF prices due to tensions in the Middle East.The move comes as jet fuel prices for scheduled Indian airlines have risen by around 8.5% in April, though the increase has been lower than initially feared. The central government on Wednesday issued a clarification on the jet fuel price hike and capped the increase in ATF prices for domestic airlines at 25%.Citing tensions in the Middle East and closure of the Strait of Hormuz triggered by US-Israeli strike on Iran, the Centre called it “only a partial and staggered increase”.In Delhi, ATF now costs Rs 1,04,927 per kilolitre, up from Rs 96,638.14 last month. At the country’s second-busiest hub, the price has increased to Rs 98,247 from Rs 90,451.87.The relatively moderate hike is expected to help avoid a sharp increase in airfares for most passengers and comes as a relief for financially strained airlines as well as flyers.However, the impact has been far more severe for non-scheduled, ad hoc, and charter operators.For domestic flights in this segment, ATF prices have surged by about 115%, while international operations have seen an increase of roughly 107%.

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