Jet fuel, which accounts for nearly 40% of an airline’s operating cost, hits new highs this year
Jet fuel, which accounts for nearly 40% of an airline’s operating cost, hits new highs this year
Jet fuel prices rose 3.22% on Sunday – the ninth straight increase this year – to an all-time high, reflecting a rise in global energy prices.
The price of aviation turbine fuel (ATF) – the fuel that helps airplanes fly – rose by ₹ 3,649.13 per kiloliter, or 3.22%, to ₹ 1,16,851.46 per kiloliter (₹ 116.8 per liter) in the national capital. Price notification of state owned fuel retailers.
Meanwhile, petrol and diesel prices remained unchanged for the 25th day in a row, rising by a record Rs 10 per liter each. While jet fuel prices are revised on 1st and 16th of every month, petrol and diesel rates in the international market are revised daily based on the same rates.
The increase in ATF price is due to the sharpest ever increase of 18.3% (₹17,135.63 per kiloliter) on March 16 and 2% (₹2,258.54 per kiloliter) on April 1. Prices were increased marginally by 0.2%. on 16 April.
ATF now costs ₹1,15,617.24 per kiloliter in Mumbai, while it costs ₹1,21,430.48 in Kolkata and ₹1,20,728.03 in Chennai.
Rates vary from state to state depending on local taxation events.
Fuel rates in India have been hiked as energy prices soared globally due to supply concerns after Russia’s invasion of Ukraine and coming back after being hit by the pandemic. India is 85 per cent dependent on imports to meet its oil requirements.
Jet fuel, which accounts for about 40% of an airline’s operating cost, has hit new highs this year. ATF prices have increased every fortnight since the beginning of 2022. ATF prices have increased by ₹42,829.55 per kiloliter (₹42.8 per liter), or more than 50%, in the nine hikes that began on January 1.