The airline industry in India is facing a tough time with the rising fuel prices. Unlike Petrol and Diesel ATF is unregulated in India and direct increase in crude prices translate to proportional increase in ATF prices. The pressure on fuel prices is evident from the fuel related surcharges that airlines are now levying - Rs 2900/- at last count. Only a little over a year ago the ticket prices were less than Rs 2000 for low cost airlines. High fares have airline travel out of the common man’s reach again.
Who is responsible for these fuel prices? Speculation? Dwindling resources? Economist thinks that speculation does not really play a part in today’s fuel prices. A Rediff columnist does not seem to think so. Whatever be the reason I feel the Oil production has peaked and we should look towards cleaner and better fuel resources to sustain the current as well as future generations.
