Jet fuel prices on Wednesday, March 16 were hiked by over 18% – the steepest ever increase – to all-time high levels after international oil prices surged to a multi-year high. The increase is the sixth straight this year – led to prices soaring past the INR 1-lakh-per-kilolitre mark for the first time.
Aviation turbine fuel (ATF) – the fuel that helps aeroplanes fly – was hiked by 17,135.63 per kl, or 18.3%, to INR 110,666.29 per kl in the national capital, according to a price notification by state-owned fuel retailers.
Jet fuel prices are revised on the 1st and 16th of every month based on the average international price of benchmark fuel in the preceding fortnight.
International oil prices had climbed to a 14-year high of near USD 140 per barrel last week on fears of supply disruption following Russia’s invasion of Ukraine. Rates have since mellowed to around USD 100 per barrel.
In Mumbai, ATF price soared to INR 109,119.83 a kl and it costs INR 114,979.70 in Kolkata. Jet fuel is priced at INR 114,133.73 per kl in Chennai. Jet fuel, which makes up for almost 40% of the running cost of an airline, has this year surged to new highs.
The previous peak of INR 71,028.26 per kl was recorded in August 2008, when international crude oil prices touched USD 147 per barrel. Brent crude oil on Wednesday, March 15 was trading just above USD 100 per barrel.
ATF prices have increased every fortnight since the start of 2022. In six hikes beginning January 1, ATF prices have been increased by INR 36,643.88 kl or almost 50%.
Brent crude oil, the best-known international benchmark, was at USD 82.74 per barrel on November 5, 2021, before it started to fall and touched USD 68.87 a barrel on December 1.
Globally, oil prices, which had traded lower early in the session, turned higher today, with Russia’s invasion of Ukraine continuing to stoke volatile trade. Brent crude rose 1.26% to USD 101.17 per barrel, and U.S. crude added 0.93% to USD 97.34 per barrel.