Why Oil Prices Are On The Rise
Global oil prices have been volatile, with Brent crude, a major international benchmark, trading around the $91-$92 per barrel mark in mid-August 2026. This upward pressure is largely due to geopolitical instability, particularly disruptions in the Strait
of Hormuz, a critical channel for global oil supplies. These events create uncertainty and lead to tighter supply, causing prices to climb as demand remains steady. The International Energy Agency (IEA) has noted that these disruptions are weighing on oil consumption and leading to elevated fuel prices globally.
The Impact on Air Travel Costs
For airlines, fuel is one of the largest operational expenses, accounting for nearly 40% of their running costs. The fuel they use, Aviation Turbine Fuel (ATF), is derived from crude oil, so when crude prices go up, so do ATF prices. In early August 2026, ATF prices in India were hiked. While the government has at times intervened to shield domestic airlines from the full impact of global surges, these increases are inevitably passed on to consumers. Airlines facing sustained high fuel costs may reduce the number of flights on certain routes to manage expenses, which can also contribute to higher fares due to lower seat availability. Consequently, travellers can expect airfares to become more expensive.
What This Means For Your Road Trip Budget
The impact isn't just in the skies. Petrol and diesel prices in India are directly linked to global crude oil rates, though domestic prices also include central and state taxes. As of August 21, 2026, fuel prices across major Indian cities like Delhi, Mumbai, and Chennai have remained largely stable but high. For example, petrol in Delhi was priced at ₹102.12 per litre, while in Mumbai it stood at ₹111.21. Since India imports over 85% of its crude oil requirement, a sustained period of high international prices will inevitably strain the budgets of those who travel by road.
How To Travel Smarter and Save Money
While rising costs are unavoidable, smart planning can help mitigate the impact on your wallet. For air travel, booking in advance is key; experts often suggest booking domestic flights around 44 days ahead and international ones up to four months prior. Being flexible with your travel dates can also unlock significant savings, as flying on a Tuesday or Wednesday is often cheaper than on a weekend. For road trips, focus on fuel efficiency. Simple actions like ensuring your tyres are properly inflated, packing light to reduce weight, and maintaining a steady speed can improve your car's mileage. Using apps to find the cheapest fuel stations along your route and avoiding idling the engine can also cut down on fuel consumption. Combining errands into a single trip and considering public transport or walking at your destination can further reduce driving costs.
