Aviation Turbine Fuel Price Hiked By 3.3% To All-Time High Levels

Amid rising global crude prices, which have crossed to over a seven-year high mark, aviation turbine fuel (ATF) prices today were hiked by 3.3 per cent, to an all time high levels across the country.

ATF price was hiked by Rs 3,010.87 per kilo litre or 3.22 per cent to Rs 93,530.66 per kl in the national capital, according to a price notification issued by state-owned fuel retailers.

Jet fuel, which makes up for almost 40 per cent of the running cost of an airline, has this year surged to new highs.

This is the fifth hike in jet fuel prices this year and is in sharp contrast to petrol and diesel prices, which have remained unchanged for the past 116 days consecutively. Though the stability in fuel prices have been attributed to assembly elections, which are currently going on in Uttar Pradesh and Manipur and have recently concluded in Punjab, Uttarakhand and Goa.

The previous peak of Rs 71,028.26 per kl was recorded in August 2008 when international crude oil prices touched $147 per barrel. Brent crude oil on Tuesday was trading above $100 per barrel.

ATF prices have increased every fortnight since the start of 2022. In five hikes beginning January 1, ATF prices have been increased by Rs 19,508.25 per kl or 26.35 per cent.

These hikes have come in the backdrop of two rounds of price cuts seen in December that reflected a fall in international oil prices during the second half of November and mid-December.

Thereafter, international rates have firmed up, leading to the hike in ATF prices.