Jet fuel prices slashed after months of hikes, commercial LPG gets costlier - Check new rates

Prices of aviation turbine fuel (ATF), or jet fuel was slashed on Thursday, following months of hikes as state-owned oil marketing companies carried out their monthly price revisions in line with global fuel benchmarks.

The latest reduction is expected to ease pressure on airlines, for which fuel accounts for nearly 40% of operating costs.

What are the new ATF rates?

In Delhi, the price of ATF was cut by ₹7353.75 per kilolitre to ₹92,323.02 per kl.

In Mumbai, ATF price was revised to ₹86,352.19 per kl, while prices in Chennai and Kolkata were cut to ₹95,770 and ₹95,378.02 per kl, respectively.

Fuel prices vary from city to city, depending on the incidence of local taxes such as VAT.

ATF prices slashed after series of hikes

The reduction comes after three rounds of monthly price hikes. The rate was last raised by ₹5,133.75 per kl, or 5.4 %, on 1 December.

Prior to the December hike, prices had risen by about 1% on 1 November and by 3.3% on 1 October.

The cuts announced on Thursday neutralises more than two-thirds of the price increase that happened since October 1.

How are ATF prices linked to airfares?

Aviation Turbine Fuel (ATF) is one of the biggest cost components for airlines – which is why change in fuel prices often have a direct bearing on airfares.

Last year in December, Civil Aviation Minister Ram Mohan Naidu – while speaking during a debate on a resolution calling for measures to regulate airfare in the country amid the IndiGo crisis – said that it is not possible to cap airfares for the entire year.

“It is not that I can cap the fare for an entire season to a certain sector,” said Naidu, stating that market demand and supply are essential in regulating fares. He said that ‘40–45% of the ticket price flyers pay’ goes for aviation turbine fuel (ATF).

Price of commercial LPG hiked

Although the prices of jet fuel were slashed, rates of commercial LPG cylinders were hiked.

In Delhi, the price of a 19-kg commercial LPG cylinder used by hotels and restaurants was hiked by ₹111 to a steep ₹1,691.50.