New Delhi : Aviation turbine fuel (ATF), or jet fuel, saw a sharp revision in India amid a surge in global crude oil prices linked to the West Asia conflict, with initial data released by Indian Oil Corporation (IOC) indicating prices had more than doubled to over Rs 2.07 lakh per kilolitre. The rates were revised soon after, with the government clarifying that domestic airlines will not bear the full impact of the increase.
ATF prices in India are deregulated and revised monthly based on international benchmarks. Due to the closure of the Strait of Hormuz and the extraordinary situation in global energy markets, a steep increase of over 100% was expected from April 1. The ministry said oil marketing companies, in consultation with the Ministry of Civil Aviation, have implemented only a partial and staggered increase of about 25% (around Rs 15 per litre) for domestic airlines.
ATF prices for domestic airlines are around Rs 1.04 lakh per kilolitre in Delhi, with other metro cities such as Kolkata and Chennai seeing levels above Rs 1.09 lakh, while Mumbai is lower at around Rs 98,000 per kilolitre. As of morning trade, Brent Crude was around $105 per barrel, while WTI crude hovered above $102 per barrel, both rising over 1%. The sustained increase in crude prices has pushed up aviation fuel costs, which are linked to international benchmarks.
Any increase in fuel prices tends to raise operating costs for carriers. Airlines are also dealing with longer flight paths due to airspace restrictions in parts of West Asia, which increase fuel consumption. A weaker rupee has further added to the cost burden as fuel is priced in dollars.
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