India's aviation sector is experiencing significant turmoil following volatile jet fuel prices amid ongoing geopolitical tensions in the Middle East. Indian Oil Corporation initially raised jet fuel prices sharply, reaching an unprecedented 207,341 rupees (approximately $2,200) per kilolitre in New Delhi, to mitigate the impact of disruptions in oil imports.
However, hours later, the company announced a reduction in the jet fuel price to about half that amount, around 104,927 rupees (approximately $1,119). This rapid fluctuation has already impacted airline profitability, with carriers increasing fuel surcharges on tickets by up to $200 for international flights and 150 rupees (~$1.60) for domestic flights.
International jet fuel prices had previously soared to $195.19 per barrel in late March, marking a 103.9% increase from February's average and a 116.8% rise compared to the same period last year. The continuing volatility is expected to cause further operational challenges for airlines, including potential flight cancellations and increased costs, as the global aviation industry grapples with rising fuel expenses driven by geopolitical conflicts.
