After the Russia-Ukraine crisis, prices rose above USD 139 a barrel last week and are now trading at USD 101.
Highlight
- Jet fuel prices rose more than 18% – the biggest increase ever, to an all-time high.
- The fuel price in Delhi increased by Rs 17,135.63 per kl or 18.3% to Rs 110,666.29 per kl.
- International oil prices rose to a 14-year high due to the ongoing Russian war in Ukraine.
Jet fuel prices were raised more than 18 percent on Wednesday – the sharpest increase ever – to the highest level ever since international oil prices hit a multi-year high.
The increase – sixth in a row this year – saw prices rise above the Rs 1 lakh per kiloliter mark for the first time.
According to a price notification by state-owned fuel retailers, aviation turbine fuel (ATF) – the fuel that helps airplanes fly – was raised by 17,135.63 per kl or 18.3 per cent to Rs 110,666.29 per kl in the national capital.
Jet fuel prices are revised on 1st and 16th of every month based on the average international price of the benchmark fuel over the last fortnight.
International oil prices rose to near 14-year highs of $140 a barrel last week on fears of supply disruptions following Russia’s invasion of Ukraine. Rates have since risen to around US$100 a barrel.
In Mumbai, the ATF price has gone up to Rs 109,119.83 per kiloliter and in Kolkata it is Rs 114,979.70. Jet fuel price in Chennai is Rs 114,133.73 per kl.
Jet fuel, which accounts for about 40 per cent of an airline’s operating cost, has hit new highs this year.
The previous peak of Rs 71,028.26 per kiloliter was recorded in August 2008, when international crude oil prices touched $147 a barrel. Brent crude oil was trading just above $100 a barrel on Wednesday.
ATF prices have increased every fortnight since the beginning of 2022. ATF prices have increased by 36,643.88 kl, or nearly 50 per cent, in six hikes starting January 1.
Unlike ATF, petrol and diesel prices remained stable for a record 132nd consecutive day on Wednesday. The daily price revision was put on hold on November 4, 2021, with the start of the election campaign for the election of new governments in states like Uttar Pradesh and Punjab.
LPG prices have also been stable since October, when they touched Rs 900 per cylinder.
This is despite the huge volatility in international oil prices. Brent crude oil, the best-known international benchmark, was at $82.74 a barrel on November 5, 2021, before it started falling and touched $68.87 a barrel on December 1.
Prices rose above USD 139 a barrel last week after the Russia-Ukraine crisis and are now trading at USD 101, up from the high of USD 86.40 on October 26, 2021, due to which petrol and diesel prices had risen. – High Time.
Petrol in Delhi costs Rs 95.41 per liter and diesel costs Rs 86.67, price information from fuel retailers in the state has revealed.
Record-high retail pump prices prompted the government to cut excise duty on petrol by Rs 5 per liter and on diesel by Rs 10. Many states matched this with a reduction in local sales tax or VAT rates.
Before the cut in excise duty, petrol and diesel prices hit an all-time high across the country. While petrol had crossed the Rs 100 per liter mark in most cities, diesel was above that level in almost half of the country. Petrol in Delhi was Rs 110.04 per liter and diesel Rs 98.42 per litre.
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