The rise in petrol and diesel prices for the second time in less than a week has raised concerns among Indian airline companies about another hike in aviation jet fuel prices next month.
This has led top aviation players in India to request oil marketing companies not to increase jet fuel prices for domestic flights as operations are becoming increasingly unviable.
IndiGo, Air India, and SpiceJet have floated a proposal to oil marketing companies to freeze aviation turbine fuel prices until the conflict in West Asia ends, Bloomberg reported.
The proposal is being considered by the oil companies. The oil and gas ministry is also involved in the discussions, according to the report.
Prices of aviation turbine fuel are usually revised by oil marketing companies on the first day of every month. Over the last two months, oil marketing companies have increased jet fuel prices.
In April, prices were increased by more than 100 percent. While the burden of the hike was fully transferred to airline operators for overseas flights, only a quarter of the increase was passed on in the case of domestic flights.
In May, a 5 percent hike was implemented, but domestic flights were shielded from the increase.
The oil ministry is again expected to intervene if oil marketing companies impose a steep price hike.
Indian airline companies had earlier warned that rising fuel costs were making operations on several routes unviable.
Jet fuel costs account for 40-50 percent of an airline’s operational expenses.
Airline operators had earlier written to the government seeking a temporary suspension of the 11 percent excise duty on aviation turbine fuel (ATF) for domestic operations.
Air India has already suspended flights on some overseas routes from Delhi, its main hub, while frequencies on other international routes have also been reduced.
