New Delhi: IndiGo has introduced a distance-based “fuel charge” on domestic and international routes leading to the speculation that airfares will shoot up. According to the company, the fuel tax will vary between R 300 and Rs 1,000 per sector. This decision was made in response to the recent sharp increase in the price of jet fuel. Aviation Turbine Fuel (ATF) accounts for a substantial portion of an airline’s operating expenses, necessitating fare adjustment to address such cost surge, according to IndiGo.
“IndiGo, India’s leading airline, is introducing a fuel charge on domestic and international routes, effective 00:01hrs October 06, 2023. The decision follows the significant increase in Aviation Turbine Fuel (ATF) prices, which have surged in the last three months with consecutive price hikes every month,” the airline said in a press note.
Issuing a statement, IndiGo said, “Under this pricing structure, passengers booking IndiGo flights will incur a fuel charge, per sector, based on the sector distance”.
According to the press note, the airline will now charge Rs 300 for trips under 500 km, Rs 400 for distances between 510 and 1,000km, Rs 550 for trips between 1,001 and 1,500 km, Rs 650 for trips between 1,501 and 2,500 km, Rs 800 for trips between 2,501 and 3,500 km, and Rs 1,000 for trips more than 3,501 km.
“IndiGo remains committed to offering affordable fares to its valued customers. IndiGo will also publish the tariff sheet subsequently, with the sector-wise charge that can be viewed on http://www.goindigo.in,” the airline said.
Notably, on October 1, the cost of aviation turbine fuel, or jet fuel, increased by 5 per cent – the fourth straight monthly increase since July. According to price notification of state-owned fuel retailers, jet fuel has been increased by Rs 5,779.84 per kilolitre, or 5.1 per cent, in the national capital to Rs 118,199.17 per kl from Rs 112,419.33.
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