Indian airlines fear shutdown amid massive increase in petrol prices

NEW DELHI: Indian airlines have informed the government that they will cease operations if fuel prices remain at their current levels.

The Federation of Indian Airlines (FIA), which represents IndiGo, Air India, and SpiceJet, declared that the airline industry currently faces severe financial difficulties, which could lead to its complete collapse.

The group requested the Civil Aviation Ministry to implement the previous pandemic restriction that limited aviation turbine fuel (ATF) prices for the aviation industry.

The industry has expressed growing fears because Prime Minister Narendra Modi’s administration intends to raise fuel prices after the state elections end.

The government denied plans to increase petrol prices but remained silent regarding potential jet fuel price changes. Authorities increased domestic jet fuel prices earlier this month to an all-time high before they retracted the increase within hours.

Indian airlines presently face elevated fuel expenses, which surpass those experienced by airlines in Thailand, Dubai, Malaysia, and Singapore because of excessive domestic fuel taxes. India maintains higher jet fuel production levels than its domestic consumption, yet officials determine its market price through import-parity methods, which include imaginary freight, insurance, and customs duty charges connected to fuel imports.

India needs to maintain its oil supply because it ranks as the world’s third-largest oil consumer. The world faces higher risks of oil supply disruptions because of Iranian conflicts and the closure of the critical oil shipment route via the Strait of Hormuz.