AGENCIES

India’s oil ministry said yesterday that domestic jet fuel prices would rise as the Middle East war pushed up energy costs, but that it had cushioned airlines from an expected 100 percent jump.

Aviation turbine fuel (ATF) makes up a substantial chunk of airlines’ expenses, and sustained increases could translate into higher airfares. State-run refiner Indian Oil Corporation said that ATF prices rose by 8.5 percent in the capital Delhi, with similar rises in other major cities.

“Due to the closure of Strait of Hormuz, and extraordinary situation in global energy markets, price of ATF for domestic markets was expected to increase by more than 100 percent on April 1,” the Ministry of Petroleum said in a statement.

In Nepal, the state-run Nepal Oil Corporation (NOC) has increased aviation fuel prices by up to 117.4 percent for international flights, effective after midnight on Tuesday.

The NOC said increases of 84.7 percent, 116.2 percent and 117.4 percent for international flights from Kathmandu, Pokhara and Bhairahawa, respectively, were needed to make payments to Indian Oil Corporation on time and avoid further supply disruptions.

Prices for domestic flights have been increased by 97.6 percent, NOC said.

Nepal increased petrol and diesel prices by 9.55 percent and 7.0 percent, respectively, and started rationing cooking gas earlier this month, reports AFP.

In Cambodia, diesel price yesterday reached double its level at the start of the war after the latest government increase, official figures showed.

Millions of Cambodian farmers are facing hardship as rising fuel and fertiliser costs are fuelling their production costs since the conflict began.

“When the price of fuel is rising, the prices of inputs, fertiliser, (and) services including transportation also rises, and smallholders are not profitable,” Cambodian Farmer Federation Association of Agricultural Producers Chief Executive Sok Sotha told Bernama.

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