Amid airlines' concerns over rising oil prices, Civil Aviation Secretary R N Choubey said today that there was no cause for worry as the current situation was not likely to get into an "oil shock state".
Oil prices have been on the rise recently with Brent Crude trading at over USD 60 per barrel.
"As of now, there is no concern because we don't expect it to get into an oil shock state," Choubey told reporters at an event.
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Expenditure on Aviation Turbine Fuel or ATF accounts for nearly 40 per cent of an airline's operations in India.
The domestic aviation sector has seen a double-digit growth in the past three years primarily spurred by low ATF prices.
Domestic air traffic has shown a consistent growth of 20-25 per cent throughout 2015 and 2016. However, the domestic travel demand petered out and stayed under 20 per cent in 2017.
A senior Boeing official, Dinesh Keskar, recently said that he expects the domestic aviation growth in India to dip to 12 per cent owing to the increase in oil prices, which is the highest in four years.
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