Jet fuel prices increased by 3.3% to new all-time highs

Jet fuel prices on Tuesday, March 1 were increased by 3.3% to all-time high levels across the country, in step with international oil prices surging to over seven-year-high.

This is the fifth hike in jet fuel or Aviation Turbine Fuel (ATF) prices this year following an unrelenting rise in global oil prices, but petrol and diesel prices remained unchanged for a record 116th day in a row, coinciding with electioneering to elect new governments in states like Uttar Pradesh and Punjab.

In five hikes beginning January 1, ATF prices have been increased by INR 19,508.25 per kl or 26.35%.

ATF price was hiked by INR 3,010.87 per kilolitre or 3.22% to INR 93,530.66 per kl in the national capital, according to a price notification of state-owned fuel retailers. 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 Tuesday, March 1 was trading above USD 100 per barrel.

ATF prices have increased every fortnight since the start of 2022. In five hikes beginning January 1, ATF prices have been increased by INR 19,508.25 per kl or 26.35%.

Aviation fuel prices increased by 3.3% to new all-time highs

These hikes in the rate came on the back of two rounds of price cuts seen in December that reflected a drop in international oil prices during the second half of November and mid-December. Thereafter, international rates have firmed up, leading to the hike in ATF prices.

ATF prices had last peaked at INR 80,835.04 per kl in mid-November 2021 before it was cut on December 1 and 15 by a total of INR 6,812.25 per kl or 8.4%.

Jet fuel prices are revised on the 1st and 16th of every month based on the average price of the international benchmark in the preceding fortnight.

Brent crude oil on Tuesday, March 1 was trading above USD 100 per barrel.

This is despite a wild swing in international oil prices. 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.

Prices have climbed to over USD 105 per barrel last week following the Russia-Ukraine crisis and is now trading at USD 100.99, well above the peak of USD 86.40 touched on October 26, 2021, which had led to petrol and diesel prices spiking to an all-time high.

Civil Aviation Minister Jyotiraditya Scindia on Monday, February 28 said that 23 states have slashed value-added tax (VAT) on jet fuel, also called aviation turbine fuel (ATF), and he is working with other states to lower tax. He said he would not rest until the burden of higher jet fuel becomes lower.

Related Articles

Responses

Jobs
Forum
Feed
News
Magazine