India’s ATF prices highest in Asia Pacific region: Study

New Delhi: Fuel prices at Indian airports are about seven times higher than that in Singapore, according to a study conducted at various airports in the Asia-Pacific region. This leads to substantial additional costs for airlines. The data has been collected by five international airlines with flights to India and the report has been submitted to International Air Transport Association. The aviation turbine fuel (ATF) price in India is Rs 37,800 per kilolitre as against the international price of Rs 21,800 per kilolitre, which is about 73% higher (at April’07 prices).
According to a report compiled by the Federation of Indian Airlines (FIA), the estimated annual fuel bill for the industry is around $1.7 billion, based on September 2006 rates (Rs 43,989 per kilolitre).
Following the dismantling of the administered price mechanism (APM), effective April 2001, the prices of ATF in India are based on international import parity prices, and directly linked to the benchmark of Platt’s publication of FOB Arabian Gulf ATF prices (AG); and do not relate to the actual cost of producing ATF in India, says the FIA report.
15/05/07 Atreyee Dev Roy/Financial Express

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Categories: General Aviation May 2007