Airlines jack up fuel surcharge due to rising oil prices

New Delhi, May 1 (UNI) Rising oil prices led several domestic and international airlines to levy a surcharge from today with cost of air turbine fuel (ATF) going up by over 8.6 per cent.

ATF prices have been raised between Rs 3,100 and Rs 3,700 per kilolitre. The hike for domestic airlines is inclusive of excise duty and sales tax. For international airlines, which do not pay local levies, the hike will be between 54 to 58 dollars per kilolitre.

Earlier on April 1, the oil firms had raised ATF price by Rs 831 to Rs 1,015 per kilolitre. Jet Airways, the country's largest domestic airline, has already started to levy a fuel surcharge of Rs 300 on all domestic fares.

Other airlines, including low-cost Air Deccan, Kingfisher and GoAir have also increased total fare due to applicable fuel surcharge.

''The fuel surcharge, which has been necessitated by the continued escalation in prices of aviation turbine fuel, will be levied on all tickets purchased within India and abroad whether they are issued against the rupee or dollar tariff,'' said a Jet Airways' official.

In the recent past, the global price of oil has risen above 70 dollars a barrel and experts anticipate it staying at this level for some time. This has left the aviation industry with little choice but to increase the fuel surcharge or raise fares.

The government-owned Indian is yet to firm up its plans. Jet fuel accounts for almost 35 per cent of the operating cost of domestic airlines.

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