The cost of aviation turbine fuel (ATF) was hiked by Rs 6,188.25 per kilolitre, or 5.29 percent, to Rs 1,23,039.71 per kg (Rs 123 per liter) in the national capital, as said.
Jet fuel costs have been on a rise since the start of 2022
However, this time, on May 16, the jet fuel expenses were hiked by a steep 5.3 percent – the tenth straight increase this year — to an all-time high, in line with a surge in global energy prices. The cost of aviation turbine fuel (ATF) — the fuel that allows airplanes to fly — was hiked by Rs 6,188.25 per kilolitre, or 5.29 percent, to Rs 1,23,039.71 per kg (Rs 123 per liter) in the national capital, according to cost information of state-owned fuel retailers.
This is the 10th straight gain in jet fuel costs this year. Meanwhile, petrol and diesel costs stayed unchanged for the 41st straight day after rising by a record Rs 10 per liter each. Jet fuel expenses are revised on the 1st and 16th of every month, while petrol and diesel rates are revised daily, based on equivalent rates in the international market.
Petrol and diesel costs were hiked by Rs 10 a liter between March 22 and April 6 and have remained on freeze thereafter. State-owned oil firms have offered no reason for keeping petrol and diesel expenses on freeze while raising ATF rates. Petrol commands Rs 105.41 a liter in the national capital and diesel is priced at Rs 96.67 per liter.
The boost in ATF price comes on the back of the steepest ever hike of 18.3 percent (Rs 17,135.63 per kg) effected on March 16 and a 2 percent (Rs 2,258.54 per kg) increase on April 1. Expenses were boosted by a marginal 0.2 percent on April 16, followed by a Rs 3,649.13 per kg (3.2 percent) hike on May 1.
Fuel rates have been increased in India
ATF in Mumbai now costs Rs 1,21,847.11 per kg, while it is priced at Rs 1,27,854.60 in Kolkata and Rs 1,27,286.13 in Chennai. Rates differ from state to state, depending on the incidence of local taxation. Fuel rates have been increased in India because energy prices globally have risen on the back of supply concerns following Russia’s invasion of Ukraine and the need to return after being hit by the pandemic.
India is 85 percent dependent on imports to meet its oil requirements.
While oil costs have eased from a near 14-year high of USD 140 per barrel, it continues to trade beyond USD 100. On May 16, Brent – the world’s most used benchmark – was trading at USD 109.76 per barrel. To compound things, the rupee has depreciated against the US dollar, making imports costlier.
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It shut at an all-time low of 77.55 a US dollar on May 13. Forex markets were shut on Monday on the account of Buddha Purnima.
Jet fuel, which makes up for nearly 40 percent of the running cost of an airline, has this year surged to new highs. ATF prices have increased every fortnight since the start of 2022. In the nine hikes beginning January 1, ATF expenses have been raised by Rs 49,017.8 per kg (Rs 49 per liter), or almost 55 percent.
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