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Air travel to get more expensive as ATF prices jump to record high

AME QUESTION PAPERbyAME QUESTION PAPER
May 17, 2022
in NEWS
105
VIEWS

The price of aviation turbine fuel (ATF) was increased by 5 percent on Monday, taking it to a record high of Rs 1.23 lakh per kilolitre in Delhi, according to a notification issued by state-owned fuel retailers.

In Mumbai, ATF now costs Rs 121,847.11 per kilolitre, while it is priced at Rs 1,27,854.60 per kilolitre in Kolkata and Rs 1,27,286.13 per kilolitre in Chennai.

The price of jet fuel has been rising since the beginning of this year, moving up from Rs 72,062 per kilolitre in January to Rs 1.23 lakh per kilolitre now, a hike of a whopping 61.7 percent. This is the tenth increase of ATF price this year.

Jet fuel makes up for more than 40 percent of the running cost of an airline and has been increased every fortnight since January 2022.
Meanwhile, petrol and diesel prices remained unchanged for the 40th straight day after a record hike of Rs 10 per litre each. Jet fuel prices are revised every fortnight (1st and 16th of every month) while petrol and diesel rates are changed daily based on international crude oil prices.
The price of ATF differs from state to state depending on local taxation. India’s fuel rates have seen a sharp surge this year on the back of supply concerns amid the ongoing Russia-Ukraine war and a rise in demand that came after relaxations in the pandemic related restrictions.
India imports more than 80 percent of its oil requirements from other countries.

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