Jet Fuel Prices Hiked On Rising Oil Prices; 4th Increase In 2 Months

On Saturday, jet fuel or ATF (aviation turbine fuel) price was hiked by 3%, marking the fourth increase in two months on these prices on account of firming international oil prices.

ATF price was raised by Rs 1,512.38 per kilolitre, or 2.96%, to Rs 52,491.16 per kl in the national capital, according to a price notification of state-owned fuel retailers.

This is the fourth increase in price since 1 December 2020. Rates had gone up by 7.6% (Rs 3,288.38 per kl) on 1 December, by 6.3% (Rs 2,941.5 per kl) on 16 December and by Rs 1,817.62 (3.69%) on 1 January.

ATF prices are revised on 1st and 16th of every month based on the average price of benchmark international rate and foreign exchange rate in the preceding fortnight.

ATF price in Mumbai has now increased to Rs 50,596.02 per kl from Rs 49,083.65 per kl.

Prices vary from state to state depending on the incidence of local taxes.

The increase in the price of ATF, which makes for close to 40% of the running cost of an airline, will put additional burden on airlines that have been struggling to return to normal business after COVID-19 lockdown had halted their operations.

International oil prices have been rebounding from the lows of April, causing a revision in retail rates in India. Petrol and diesel prices were left unchanged on Saturday, after hitting their respective record highs two days ago.

Since May 2020, petrol price has risen by Rs 15.04 per litre and diesel by Rs 12.59 a litre, price notifications of oil companies showed.