Now petrol is dearer than jet fuel

Mumbai: Jet fuel is cheaper than petrol now, but airlines do not appear to be in any mood to cut the fuel surcharge on tickets. With jet fuel or aviation turbine fuel (ATF) prices dropping by over 2.9% and petrol prices rising by Rs 5 a litre, it's cheaper now to fuel a jet aircraft than it is to fuel your car. On Monday, the cost per litre of ATF in Delhi was Rs 58.8, while that of petrol was Rs 63.4. In Mumbai the gap between prices of aircraft and car fuel was wider than that of Delhi with ATF costing Rs 59.6 per litre while petrol stood at Rs 68.3 a litre.
The ATF prices went down on Sunday, after international oil rates slumped bringing about the first reduction in ATF costs this year. In Delhi, the ATF price fell by Rs 1,766/kilolitre, while in Mumbai the fall was Rs 1,827. The 3% fall in ATF prices is not going to translate into reduction in fuel surcharge. The reduction in ATF price has come after 14 successive hikes since October, 2010, when international crude oil prices started soaring.
But there is no respite for the passenger. If you are planning a last-minute summer holiday and have not booked your airline tickets yet, then the only good news is that fuel surcharge will not shoot up till the month end. Airfare still be on the higher side with the peak season demand influencing the prices.
16/05/11 Times of India

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Categories: Indian Aviation- In General May 2011