KARACHI: The government has further intensified the financial pressure on the energy sector by announcing a fresh increase in the price of jet fuel, adding to a series of petroleum price hikes that have shaken the market over the last 48 hours.
According to official sources, the cost of aviation turbine fuel has been raised by Rs 13.23 per liter, bringing the current market price to Rs 251.2 per liter. This move follows a broader adjustment in petroleum costs announced yesterday, where a notification from the Petroleum Division saw petrol prices climb by Rs 13.18 to Rs 310.71 per liter, and high-speed diesel rise by Rs 13.80, reaching a new price of Rs 323.30 per liter.
The sudden surge in jet fuel prices is expected to have a significant adverse impact on the aviation industry, where fuel typically constitutes one of the largest operational overheads for airlines. With operating margins already thin, carriers are now facing a substantial increase in their cost of doing business.
Industry analysts suggest that such a sharp uptick in fuel expenditures will likely erode the profitability of domestic airlines, forcing them to seek ways to offset these losses to maintain operational viability.
For the general public, this price hike is almost certain to translate into more expensive domestic air travel because airlines rarely absorb the full brunt of fuel price volatility, and therefore, passengers can expect a corresponding rise in ticket prices through the implementation of fuel surcharges or a general adjustment of base fares.
As the cost per seat-kilometer increases, the affordability of air travel may decline, potentially leading to a dip in domestic passenger traffic as travelers opt for more affordable, albeit slower, ground transportation.
Beyond the skies, the simultaneous rise in petrol and diesel prices is expected to create a ripple effect across the wider economy.
Since diesel is the primary fuel for freight and logistics, the increased cost of transporting goods is likely to drive up the retail prices of essential commodities. Combined with the aviation hike, these cumulative increases signal a challenging period of inflationary pressure that will be felt across multiple sectors of the national economy.
