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Jet fuel price increased by 6.5%; airfares may rise by up to 20%

Jet fuel price increased by 6.5%; airfares may rise by up to 20%

Jet fuel price increased by 6.5%; airfares may rise by up to 20%
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By CNBC-TV18 May 2, 2018 10:06:11 AM IST (Updated)

Airfares are due to increase by up to 20 percent after the price of aviation turbine fuel (ATF), or jet fuel, was raised by 6.5% to Rs 65,340 per kilolitre on Wednesday.

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The increase in ATF was declared by Indian Oil Corporation (IOC) on its website. The government-owned company had cut ATF price by 0.3% in April and raised the price by 0.8% in March.
Airfares could increase due to the peak season impact too. On an average, fares could increase by 10%, but in the low fare bucket, prices could soar by up to 20%, according to aviation industry insiders.
The increase in fares would be mainly for bookings made close to the date of travel, say within seven days, according to a senior airline executive. Fares for those flights may have gone up as much as 50% due to fuel and seasonality, he said adding that fares for travel beyond 7-15 days are still very low. He did not want to be named.
On a month-on-month basis, ATF prices were at Rs 61,450 per kilolitre in April.
Jet fuel prices are revised every month.
 
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