In the national capital, the price of aviation turbine fuel (ATF) was raised by 2%, or Rs 2,258.54 per kilolitre, to an all-time high of Rs 1,12,924.83 per kilolitre.
Prices in Kolkata, Mumbai, and Chennai increased to Rs 1,17,353.71, Rs 1,11,690.61, and Rs 116,583.71, respectively, per kilolitre.
This is the seventh increase since January 2022, as global energy costs continue to rise.
- ATF prices are updated twice a month, on the 1st and 16th, and vary by state due to different value-added taxes.
- The latest hike follows the steepest record hike on March 16 of 18.3% (Rs 17,135.63 per kilolitre).
- Some airlines announced a price increase at the time.
The reason for the increase is the continuous rise in global energy prices, which has been exacerbated by the Ukraine crisis and supply concerns.
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- Brent crude was priced at $105 a barrel on Friday, up 65 percent year over year.
- Jet fuel accounts for 30-40% of the cost of operating an aircraft in India, and these price increases will slash profit margins even more for airlines that have already incurred large losses in recent quarters due to the pandemic.
Domestic aviation air traffic, on the other hand, has seen a jump in demand in recent weeks as the number of active Covid cases in the country has decreased.
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