New Delhi: Budget carrier SpiceJet Ltd will consider raising fares after state-run refiner Indian Oil Corporation raised jet fuel prices by about 3% from 1 August.
“We’ll decide by tomorrow,” SpiceJet’s Chief Financial Officer Partha Sarathi Basu said over telephone on Friday.
Indian Oil raised domestic jet fuel prices to Rs71,028.26 per kilolitre from July’s Rs69,097.19 per kilolitre for Delhi, and Rs73,673.56 per kilolitre from Rs71,630.53 per kilolitre for Mumbai.
SpiceJet increased fares in June by Rs300 on the short sectors and by Rs550 on the long sectors, afer jet fuel prices rose 13.4% from May levels.
Domestic jet fuel prices have risen by 56% since the start of the year on the back of high crude oil. Indian jet fuel, among the most expensive globally, makes up 45% of an airline’s operating costs.
SpiceJet had earlier said it was pruning services in loss-making routes and cutting down flights to trim losses due to high prices of fuel.