Soaring Fuel Costs Amid Global Tensions: Impact on Airlines and Hospitality

Aviation fuel prices have more than doubled in India, driven by global oil market turmoil due to conflicts in West Asia and Ukraine. The hike increases airline costs and also affects commercial LPG rates, impacting hotels and restaurants. Domestic LPG prices remain unchanged.

In a significant economic development, aviation turbine fuel prices in India have doubled to a record high of Rs 2.07 lakh per kilolitre. This unprecedented rise follows global oil price surges linked to ongoing conflicts in West Asia and Ukraine.

The cost escalation is poised to heavily impact airlines, as fuel now constitutes around 40% of their operating expenses. Notably, flight paths have been adjusted to navigate closed airspace, further straining financial resources.

Commercial LPG, pivotal for hotels and restaurants, also saw a price increase to Rs 2,078.50 per 19-kg cylinder. Meanwhile, domestic LPG rates stayed stable. State-run oil firms align price adjustments with global benchmarks and fluctuate with exchange rates.

(With inputs from agencies.)