Jet fuel prices are revised on the 1st and 16th of every month, while petrol and diesel rates are revised daily, based on equivalent rates in the international market
PRAVASISAMWAD.COM
Air Turbine Fuel prices were jacked up for the tenth time this year and the rise was a steep 5,3 per cent. The hike was in line with the rise in global energy prices.
ATF prices went up by INR 6,188.25 per kilolitre, or 5.29 per cent, to INR 1,23,039.71 per kl (INR 123 per litre) in Delhi, according to a price notification from state-owned fuel retailers, reported PTI on May 16, 2022.
The rise in ATF prices was not reflected in the price of petrol and diesel prices that remained unchanged for the 41st day after a record INR 10 per litre rise each between March 22 and April 6. Jet fuel prices are revised on the 1st and 16th of every month, while petrol and diesel rates are revised daily, based on equivalent rates in the international market. Petrol costs INR 105.41 a litre in the capital while diesel is available at INR 96.67 per litre.
Jet fuel, which makes up for almost 40 per cent of the running cost of an airline, has this year gone to new highs. ATF prices have increased every fortnight since the start of 2022. In the nine hikes beginning January 1, ATF prices have been increased by INR 49,017.8 per kl (INR 49 per litre) or nearly 55 per cent
The increase in ATF price comes after the steepest-ever hike of 18.3 per cent (INR 17,135.63 per kl) effected on March 16 and a 2 per cent (INR 2,258.54 per kl) increase on April 1. Prices were increased by a marginal 0.2 per cent on April 16, followed by a INR 3,649.13 per kl (3.2 per cent) hike on May 1.
ATF in Mumbai now costs INR 1,21,847.11 per kl, while it is priced at INR 1,27,854.60 in Kolkata and INR 1,27,286.13 in Chennai. Rates differ is each state due to the local taxation. Fuel prices have been on the rise in India because energy prices have gone up due to supply concerns following Russia’s invasion of Ukraine and the high demand after the pandemic. India is 85 per cent dependent on imports to meet its oil needs.
Making fuel even costlier is the depreciation of the rupee against the US dollar, making imports costlier. Last Friday, the rupee closed at an all-time low of 77.55 to an US dollar. Forex markets were closed on Monday on the account of Buddha Purnima.
Jet fuel, which makes up for almost 40 per cent of the running cost of an airline, has this year gone to new highs. ATF prices have increased every fortnight since the start of 2022. In the nine hikes beginning January 1, ATF prices have been increased by INR 49,017.8 per kl (INR 49 per litre) or nearly 55 per cent.
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