IndiGo hikes fuel surcharge: Revised rates to various destinations

IndiGo Airlines has hiked the fuel surcharge on longer routes, though the surcharge on shorter routes has slightly dropped. Earlier, the surcharge to the Gulf sector was Rs 900. Now, the longer route surcharges have increased to ₹3,000 for journeys up to 2,000 km and ₹5,000 for routes longer than that. The surcharge to China and other Southeast Asian countries has now risen to ₹3,500–₹5,000.

The surcharge to Britain and Europe was ₹2,300 earlier. Now, passengers have to pay a whopping ₹10,000. The surcharge to African countries also rose from ₹1,800 to ₹5,000. The central government had stated yesterday that only a partial fare hike would be allowed in the ATF rate. Meanwhile, IndiGo hiked the fuel surcharge within hours. 

Revised surcharge (from today onwards)
Domestic services
•0 – 500 km: ₹275 (Eg: Kochi – Bengaluru – 342 km)
•501 – 1000 km: ₹400 (Eg: Kochi – Hyderabad – 840 km)
•1001 – 1500 km: ₹600 (Eg: Mumbai – Thiruvananthapuram – 1251 km)
•1501 – 2000 km: ₹800 (Eg: Kochi – Kolkata – 1880 km)
•Above 2000 km: ₹950 (Eg: Delhi – Kochi – 2057 km)

International services
•Indian subcontinent, including Sri Lanka, Nepal, Bhutan, Maldives: ₹900 (up to 500 km), ₹2,500 (above 500 km)
•GCC, Middle East: ₹3,000 (up to 2000 km), ₹5,000 (above 2000 km)
•South East Asia, China: ₹3,500 (up to 2000), ₹5,000 (above 2000 km)
•Africa: ₹5,000
•Greece, Turkey: ₹7,500
•Britain, Europe: ₹10,000

Why airfare getting pricier
Airfares in the country are getting pricier as the price of Aircraft Turbine Fuel (ATF) is skyrocketing. Although domestic airline companies would receive subsidies from the government, services operated by foreign airlines would become more expensive. Airfares to the Gulf and European sectors are rising at a meteoric pace. Besides, tickets from various cities to Kerala have also got pricier as the holidays have kicked in. 

ATF prices rose as fuel shipments through the Strait of Hormuz were halted due to the ongoing US–Iran conflict. Although news that the Indian Oil Corporation, a public-sector enterprise, had hiked ATF prices to ₹2.07 lakh per kilolitre had caused panic, IOC dismissed it as fake news. Meanwhile, reports indicate the price was lowered to ₹1.04 lakh after the central government intervened. The central government stated that only a partial hike in the ATF price would be allowed, considering the survival of domestic airlines. The airline companies spend 40 per cent of their total expenditure on ATF. 

After the Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation intervened, the public-sector oil companies decided to recover only 25 per cent of the additional liability (₹15 per litre) arising from the war through an ATF price hike. The revised ATF charges in Delhi are ₹1,04, 927 per kilolitre. Meanwhile, it is ₹98,247 per kilo litre in Mumbai. However, airlines operating international routes may face additional financial liability due to the ATF price hike. The ATF is revised monthly after the regulations on the ATF were withdrawn in the country in 2001. A 100 per cent hike in the ATF prices was expected as soon as the oil shipments through the Strait of Hormuz were stopped. 

The Ministry of Petroleum and Natural Gas, as well as the Ministry of Civil Aviation, considered the recommendation for a price hike in stages and limited the ATF price hike to ₹21 per litre.  Airline companies like Air India have been charging ₹400 for domestic services and 10 dollars for the Gulf sector. This rate will vary by sector and route. The fuel consumption has also increased as aircraft have to fly longer routes or extra hours, as most airspaces have been closed due to the war in West Asia.