Staggered Jet Fuel Price Increase Shields Airlines and Passengers

Civil Aviation Minister K Rammohan Naidu announced that public sector oil companies' partial and staggered increase in jet fuel prices will protect domestic passengers from significant fare hikes. The decision, spurred by global energy disruptions, aims to maintain aviation sector stability while ensuring international routes reflect full market prices.

Civil Aviation Minister K Rammohan Naidu declared that the public sector oil marketing companies' decision to enact a partial and staggered rise in jet fuel prices is designed to shield passengers from significant fare increases.

Jet fuel, which constitutes about 40% of an airline's operational outlay, has been deregulated since 2001, and prices are revised monthly according to global standards. Naidu noted the decision emerged amid global energy challenges and the closure of critical maritime passages, with a dramatic 100% price increase expected by April 1.

Instead, public oil companies decided to implement a more gradual 25% increase for domestic airlines, in coordination with the Ministry of Petroleum and Civil Aviation. This pragmatic measure is expected to alleviate fare burden while maintaining operational stability in a tumultuous period for the aviation industry.

(With inputs from agencies.)