- The price of ATF for international airlines was raised by 5 per cent on Friday
- Delhi's ATF price for international airlines increased to $1,511.86 per kilolitre
- Domestic airlines' ATF prices remain unchanged despite the international hike
The price of Aviation Turbine Fuel (ATF), or jet fuel, for international airlines was raised by 5 per cent on Friday. This is the second straight monthly increase.
State-owned oil firms revised the rates as global energy prices remain elevated. However, the increase applies only to foreign carriers and international operations. There is no change in ATF prices for domestic airlines.
In Delhi, ATF for international airlines has been increased by $76.55 per kilolitre. The new rate stands at $1,511.86 per kl. Delhi is home to India's busiest airport and is used as a benchmark for ATF pricing.
The revision follows a sharp hike on April 1. On that day, ATF prices for domestic airlines were raised by 25 per cent to Rs 1,04,927.18 per kl. That was one of the steepest increases seen in recent years.
ATF prices in India were deregulated more than two decades ago. Since then, rates have been aligned with international benchmark prices under a written understanding between airlines and oil marketing companies.
However, the recent surge in global energy prices due to the Iran war crisis has led to unusually sharp movements in fuel costs. Industry sources said the government and oil firms decided to follow a calibrated approach instead of passing on the full impact at once.
Under this approach, international airlines and foreign carriers are being charged market-linked rates. Prices for domestic airlines, however, are being moderated to reduce the burden on Indian carriers.
ATF is one of the biggest cost components for airlines. Any change in fuel price directly affects operating costs. For international airlines, the higher ATF rate could add to expenses on India routes.
The price revision was issued by state-run oil marketing companies such as Indian Oil Corporation, which revise ATF rates at the start of every month based on global trends.
With this move, fuel costs for international operators have risen for the second month in a row, while domestic carriers continue to get some relief through moderated pricing.
