Air Travel Likely to Cost Dear As Jet Fuel Prices Hiked by 4%
The Wire Staff
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New Delhi: The price of aviation turbine fuel (ATF) shot up by nearly 4% on Wednesday, February 1, according to the news agency PTI.
In absolute figures, with an increase of Rs 4,218 per kilolitre, the jet fuel in the national capital, Delhi, will now cost Rs 1,12,356.77 per kilolitre. Meanwhile, there has been no revision in the petrol and diesel prices, almost for 10 months now.
The rise in jet fuel price will have an impact on airlines for which fuel constitutes 40% of the total operating cost. This burden will most likely be transferred to passengers.
The hike in the jet fuel price comes after three rounds of reduction since November 2022. On January 1, the price saw a reduction from Rs 1,17,587.64 per kilolitre to Rs 1,08,138.77 per kilolitre. Earlier, on December 1, 2022, the price had been slashed by 2.3%, and prior to that, on November 1, 2022, by 4.19%.
Generally, jet fuel prices are revised every month on the first, based on the average rate of international benchmark and foreign exchange rates.
As for petrol and diesel prices, petrol is priced at Rs 96.72 per litre and diesel at Rs 89.62 in Delhi. This is the record 10th month when petrol and diesel prices remain frozen.
Generally, state-owned fuel retailers are expected to revise petrol and diesel prices daily based on a 15-day rolling average of benchmark international fuel prices. But they haven't done so since April 6, 2022.
Fuel prices were revised last on May 22, 2022, when the government slashed excise duty to give reprieve to consumers from a spike in retail rates that followed a hike in global oil prices.
Similarly, the prices of LPG cylinders were not revised on Wednesday, February 1. Generally, the prices of LPG cylinders are supposed to see a revision on the first of every month.
Currently, a commercial LPG cylinder of 19 kg, which is used by hotels, restaurants and other business establishments, costs Rs 1,769 in the national capital. On the other hand, an LPG cylinder used for domestic purposes is priced at Rs 1,053 per 14.2-kg cylinder. Depending on local taxes, there is a slight variation in the price from state to state.
This article went live on February first, two thousand twenty three, at five minutes past two in the afternoon.The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.