In March, there has been a slight but significant drop in jet fuel prices, providing relief to air travelers. Following a notable increase of over 5% in jet fuel costs during February, the recent decline has been primarily attributed to the falling crude oil prices and an anticipated reduction in domestic flight demand after the conclusion of the Kumbh Mela. Additionally, international flight fuel prices have also seen a decrease. This reduction in air travel costs is particularly timely as many individuals plan to return home during the Holi festival. Let’s take a look at how jet fuel prices have changed across major cities in India.
Decline in Jet Fuel Prices for Domestic Flights
The reduction in jet fuel prices has been observed in various metropolitan areas, making flying more economical:
| City | Price Change (INR) | Current Price (INR per KiloLiter) | Percentage Decrease |
|---|---|---|---|
| Delhi | -222 | 95,311.72 | -0.23% |
| Kolkata | -372.96 | 97,588.66 | -0.38% |
| Mumbai | -248.87 | 89,070.03 | -0.28% |
| Chennai | -372.29 | 98,567.90 | -0.37% |
Jet Fuel Prices for International Flights
In contrast, the prices for international flights have shown mixed results, with Kolkata experiencing an increase while other major cities have witnessed reductions:
- Kolkata: Jet fuel prices rose by 3.84%, now at $32.77 per KiloLiter.
- Delhi: Reduced by $5.83, current price at $848.32 per KiloLiter.
- Chennai: Decreased by $5.76, bringing the price down to $843.13 per KiloLiter.
- Mumbai: Significant reduction of over 5%, with prices falling by $45.58 to $847.10 per KiloLiter.
Will Air Travel Become More Affordable?
The across-the-board reduction in jet fuel prices for domestic flights raises hopes for potential fare reductions by airlines. Given that fuel can account for over 40% of operational costs for airlines, any decrease in fuel prices may lead to significant savings for these companies. While airlines may be in a position to offer lower fares to passengers, the stark contrast to the 5% increase observed in February indicates that the overall fare reductions may not be substantial. It remains to be seen how this fluctuating fuel landscape will impact air travel prices long term.