Jet fuel prices raised by 5.3% in tenth consecutive hike
Delivering a jolt to the aviation industry, jet fuel prices saw a 5.3 per cent hike – the tenth straight increase this year – to an all-time high on Monday, in line with a surge in global energy prices.
According to a price notification of state-owned fuel retailers , the price of aviation turbine fuel (ATF) was raised by ₹6,188.25 per kilolitre, or 5.29 per cent, to ₹1,23,039.71 per kl (₹123 per litre) in Delhi.
This is the tenth consecutive hike in jet fuel prices this year.
Prices of petrol and diesel, however, remained unchanged for the 41st straight day after rising by a ₹ 10 per litre each.
Jet fuel prices are revised on the first and 16th of every month, while petrol and diesel rates are revised daily, based on global crude oil prices.
Between March 22 and April 6, petrol and diesel prices were raised by ₹10 a litre and have remained constant. State-owned oil firms have offered no reason for keeping petrol and diesel prices on freeze while raising ATF rates.
Petrol costs ₹105.41 a litre in the national capital and diesel is priced at ₹96.67 per litre. The increase in
ATF price comes on the back of the steepest ever hike of 18.3 per cent (₹17,135.63 per kl) effected on March 16 and a 2 per cent (₹2,258.54 per kl) increase on April 1. The rates were marginally hike by 0.2 per cent on April 16, followed by ₹3,649.13 per kl (3.2 per cent) on May 1.
ATF in Mumbai now costs ₹1,21,847.11 per kl, while it is priced at ₹1,27,854.60 in Kolkata and ₹1,27,286.13 in Chennai.
Fuel prices have seen an exponential rise due to increase in global energy prices amid supply concerns due to the Russian invasion of Ukraine.
India import 85 per cent of its crude oil from abroad. While oil prices have eased from a near 14-year high of USD 140 per barrel, it continues to trade above USD 100.
On Monday, Brent, the world’s most-used benchmark, was trading at USD 109.76 per barrel. To compound things, the rupee has depreciated against the US dollar, making imports costlier. It closed at an all-time low of 77.55 to a US dollar on Friday. 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 surged 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 ₹49,017.8 per kl (₹49 per litre) or nearly 55 per cent.
(With inputs from agencies)