The regular rise in the fuel prices has already hurt the customer's savings hardly as they are spending more on transportation costs they are all set to get another blow from the aviation industry with the increase in flying charges. The airline companies have hiked the flight charges making flying expensive due to rallying fuel rates.
The Jet Airways has increased the fuel rates by 7.3 percent amid the state-run oil marketing companies decided to raise the fuel rates of jet fuel to the tune of 7.3 percent for domestic airlines and up to 5 percent for international airlines with effect from Monday.
Generally, firms revise jet fuel prices during the beginning of every month after taking into account the exchange rate and oil prices into consideration. Accordingly, ATF prices have surged up by Rs 5,100 per kilolitre for domestic purpose and in case of international airlines, it is up by $37.
Currently, the rising crude prices in the global industry amid tightening oil market and the tumbling Indian rupee has led to the surge in the petrol and diesel prices in the domestic market. The return of U.S. sanctions on Iran added with the inability of the OPEC member countries to fulfil the global oil requirement has led to the volatility in the oil industry.
Today, petrol and diesel prices in New Delhi, the national capital of India was recorded at Rs 83.85 per litre and at Rs 75.25 per litre respectively.
The rupee fell to its new low to hit 73.09 against the strong dollar during today's trade session. The fall in the rupee added with the rising crude prices in the global market will expand the current account deficit of India. The oil import bill of India has ballooned during 2018-2019 and has currently crossed $109 billion. India depends on foreign exports for oil up to the tune of 83% to meet its domestic requirements.
The current situation is likely to up the inflation rates to a higher extent and will force the Central Bank of the country - RBI to raise interest rates which in turn will curtail the energy demand and economic growth of the country.