Kamal Ghorui
NEW DELHI: Oil on fire is beginning to make flying much more expensive. IndiGo will levy a fuel charge between Rs 425 and Rs 2,300 from Saturday (March 14), on all its domestic and international flights due to “the significant surge in fuel prices following the ongoing geopolitical issues.” IndiGo’s announcement of this cess, which has been levied from time to time by airlines globally over past two decades in periods of global crisis when oil price spikes, comes three days after Air India group also announced the same.“IATA’s ‘jet fuel monitor’ indicates an over 85% increase in fuel prices for the region. Aviation turbine fuel (ATF) represents a significant share of airlines’ operating cost. This sudden and steep increase will have a material impact on all airlines’ costs and network, including IndiGo’s. While offsetting the entire impact of this fuel price surge requires a very substantial adjustment to fares, IndiGo has introduced a relatively smaller amount as a fuel charge keeping in mind the consequential burden on customers,” the airline said.IndiGo will levy Rs 425 as fuel charge on domestic and Indian subcontinent flights; Rs 900 on Middle East flights; Rs 1,800 on Southeast Asia, China, Africa and West Asia flights and Rs 2,300 on Europe flights.Air India Group has starting Thursday started levying a fuel surcharge between Rs 399 and $200 on its flights. The group had clearly said while it “regrets” the same, “some flights would be unable to cover operating costs and would have to be cancelled” had the surcharge not been applied.Airlines in India have for years been seeking some fiscal relief on excise and GST on fuel to no avail. But with oil prices skyrocketing, rupees crashing to new lows everyday, longer routes due to airspace restrictions and uncertainty of schedules, costs have reached a tipping point for airlines. Indian airlines with significant international bookings and sales in forex were a little insulated on rupees front so far but the hike in oil prices and long routes – with no fiscal support from govt on excise or GST – passengers will have to shell out even more to fly.
