BENGALURU: The price of Aviation Turbine Fuel was increased by 5% on May 16, resulting in a new high of Rs 1.23 lakh per kilolitre in New Delhi, said state-owned oil companies in a statement.
ATF price is currently the highest in Kolkata at Rs 1,27,854 per kilolitre, followed by Mumbai at Rs 1,21,847.11 per kilolitre. The price of the jet fuel in Chennai seems to be the lowest as compared to the other states, at Rs 1,27,286.13 per kilolitre.
Since January, jet fuel prices have skyrocketed, climbing from Rs 72,062 per kilolitre to Rs 1.23 lakh per kilolitre now, a 61.7 per cent increase. The latest price hike is the tenth so far in this year. Jet fuel accounts for more than 40% of an airline’s operating costs, and it has been increasing every two weeks since January 2022.
While ATF prices are rising, petrol and diesel prices have remained unchanged for the last 40 days after a sudden and huge price hike of Rs 10 per litre each. Jet fuel prices are usually revised once every fortnight, as compared to petrol and diesel prices which change every day depending on international crude oil prices.
Depending on a state’s tax, ATF prices vary across the country. Fuel prices in the country have risen steadily, thanks to the supply and demand chain as supply has come down due to the ongoing Russia-Ukraine war, and demand has gone up as countries have eased Covid-19 pandemic restrictions. Adding salt to the wound, India imports more than 80 per cent of its oil from other countries.