Monday, August 01, 2022

Respite for flyers? ATF prices down over 10% from peak as international oil prices ease

The price of aviation turbine fuel (ATF) in India was revised lower w.e.f August 1 international oil prices eased. Jet fuel prices are now over 10% lower from the peak hit in June 2022.

ATF prices for domestic airlines in Delhi stood at Rs 1,21,915.57 per kl on Monday, down from Rs 138,147.93 per kl seen on July 16. In Mumbai, it stood at Rs 1,20,875.86 per kl while in Kolkata the price of ATF was Rs 1,28,425.21 per kl. Down south, the price of ATF is Rs 1,26,516.29 per kl.

Prices of jet fuel have been revised only thrice in 2022 so far. ATF prices were slashed by 2.2% on July 16. Prices had peaked to Rs 141,232.87 per kl (Rs 141.23 per litre) in June.

Readers may note that the ATF prices are revised on the 1st and 16th of every month based on rates of benchmark international oil rates in the previous fortnight. Rates were not revised on July 1. Prior to that, prices were hiked by the steepest ever 16% to catapult rates to an all-time.

International oil prices have softened since on fears of recession in major economies. Oil prices are at pre-Ukraine war levels.

Jet fuel makes up almost 40% of the operating cost of an airline, the increase in prices had resulted in a rise in the cost of flying. With the latest cut in prices, consumers may see some relief.

01/08/22 Economic Times

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