Indian airline IndiGo increases fuel surcharge for all flights starting October 6

The Indian airline IndiGo announced on Monday its intention to increase its fuel surcharges on both domestic and international routes, starting from October 6. This decision is linked to the rise in global prices for aviation turbine fuel.

On domestic routes, fuel surcharges will increase in the range of 375 rupees to 1300 rupees, compared to the previous level of 275–950 rupees. For international flights, the cost will rise to 1000–10,000 rupees, whereas previously it was from 900 to 10,000 rupees, depending on the distance covered.

IndiGo's last tariff increase was implemented in April. This step is being taken against the backdrop of instability in aviation turbine fuel prices caused by the war between the USA, Israel, and Iran. The airline reported that global prices rose by 14 percent in October.

Fuel accounts for up to 40 percent of airlines' operating costs, and sharp price fluctuations can negatively affect their profitability. Previously, IndiGo recorded a loss of 3.82 billion rupees in the first quarter. In May, the company stated that it was considering the possibility of hedging fuel costs to protect its margin.

South African motorists will face another significant increase in fuel prices, effective from October 7th. According to current forecasts, the price increase for most types of gasoline will exceed 3 rand per liter.

Data collected by the Central Energy Fund (CEF) at the end of the month indicates an increase in the cost of unleaded petrol 93 by approximately 3.08 rand per liter, and unleaded petrol 95 by 3.29 rand per liter. It is projected that the price of diesel fuel will rise by 2.80 rand per liter for the 500ppm grade and by 3.15 rand per liter for the 50ppm grade.

With the full application of these increases and no government intervention, unleaded petrol 95 could cost around 29.23 rand per liter on the coast and 30.10 rand in Gauteng starting Wednesday, October 7th, while unleaded petrol 93 may reach 29.94 rand.

Furthermore, 50ppm diesel fuel could exceed 34 rand per liter on the coast and 35 rand inland after accounting for the retail markup.

These latest increases follow a sharp rise in fuel costs earlier this year. This is particularly noticeable for drivers, as fuel is one of the most immediate and unavoidable household expenses.

For example, a driver who travels 1500 km monthly in a small car consuming 5.5 liters per 100 km will face a monthly fuel bill of approximately 2470 rand at the projected October price, compared to 1666 rand in March. For a car consuming 8 liters per 100 km, the projected cost for the same distance will be about 3593 rand.

The price hike also means a constant increase in the cost of every kilometer driven. A small car consuming 5.5 liters per 100 km will cost approximately 1.65 rand per kilometer at the projected October price, up from approximately 1.11 rand in March.

Prospects for temporary tax support appear limited. In April, the government reduced the General Fuel Levy by at least 3 rand per liter for two months, but the Minister of Mineral Resources and Energy, Gweed Mantsashe, stated last month that there are no immediate plans for similar support.

The latest surge in prices is largely due to high international oil prices, with Middle East tensions and concerns over disruptions in crude oil supply and shipping creating pressure in September. The Strait of Hormuz remains a subject of particular concern for global energy markets.

Therefore, if conditions do not improve significantly, motorists enter October with fuel prices that will put additional pressure on household budgets.