In an attempt to stem the fall in the growth of passenger traffic in the country that is expected to get worse thanks to the 12 to 14% jump in the cost of aviation turbine fuel (ATF), air carriers have decided to resort to charging differential fuel surcharge.

According to sources, airlines will charge Rs 150 more for short haul flights (less than 1 hour duration or up to 750 kilometers) while they will charge Rs 350 above the existing fuel surcharge for long haul flights (more than 1 hour or 750 kilometers).

Late Monday night, oil companies announced an increase in the price of aviation turbine fuel by 12-14% in various cities in step with the rise in global crude oil prices.

The price hike has been made worse due to the cross subsidization that exists in the sector where due to the strict control on the cheaper and more commonly used petrol and diesel, ATF gets a much steeper price tag.

?It makes logical sense as the consumption is lower on short haul flights. We have been discussing this for some time and this seemed the right time to implement the differential surcharge,? Samyukth Sridharan, chief commercial officer with low cost carrier SpiceJet said.

?It?s a move to make sure that passengers, especially on short haul, suddenly don?t feel that air travel is to expensive and they start going back to the railways,? he added.

There is also the added aspect of the new airports at Hyderabad and Bangalore which are far from the city. This may lead to passengers avoiding flights to those cities and preferring to travel by rail or road, Sridharan said.

?Passengers should continue flying despite the distance from the city and the rising cost,? Sridharan said. The cost of ATF price in

Delhi has risen to Rs 53,309.30 per kilolitre from Rs 47,048.86 per kl last month with effect from April 1, Indian Oil Corporation (IOC), India?s largest fuel retailer, said.

In Mumbai, the price rose by Rs 6,536.35 a kl to Rs 55,191.58 per kl from Rs 48655.23. In Kolkata, the price of ATF has risen to Rs 59610.15 from 53087.34 in March while in Chennai, the ATF cost has risen to Rs 57821.62 from Rs 51090.08 last month.

For foreign airlines, which are exempt from paying sales tax, ATF price in Delhi has been raised to $1,023.40 per kl (Rs 40,936) from $911.76 a kl (Rs 36,470).The fares are expected to be much lower in states of Maharashtra (except Mumbai and Pune), Andhra Pradesh and Kerala.