Aviation turbine fuel (ATF) — the fuel that helps planes fly — was increased by 17,135.63 per kl, or 18.3 percent, to Rs 110,666.29 per kl in the national capital, according to a price notification by state fuel shops.
Jet fuel prices rose more than 18 percent on Wednesday – the strongest increase ever – to an all-time high after international oil prices soared to a multi-year high. The increase – sixth in a row this year – led prices to soar above Rs 1 lakh per kiloliter for the first time. Aviation turbine fuel (ATF) — the fuel that helps planes fly — was increased by 17,135.63 per kl, or 18.3 percent, to Rs 110,666.29 per kl in the national capital, according to a price notification by state fuel shops. Jet fuel prices are revised on the 1st and 16th of each month based on the average international reference fuel price over the previous two weeks.
International oil prices soared last week to a 14-year high of nearly USD 140 a barrel amid fears of supply disruptions following Russia’s invasion of Ukraine. Since then, rates have fallen to around USD 100 per barrel.
In Mumbai, ATF price rose to Rs 109,119.83 per kl and costs Rs 114,979.70 in Kolkata. Jet fuel costs Rs 114,133.73 per kl in Chennai. Jet fuel, which makes up nearly 40 percent of an airline’s operating costs, has soared to new heights this year.
The previous peak of Rs 71,028.26 per kl was recorded in August 2008, when the international price of crude oil reached USD 147 per barrel. Brent crude was trading just above USD 100 a barrel on Wednesday.
ATF prices have risen every two weeks since the beginning of 2022. During six hikes starting on January 1, ATF prices have increased by Rs 36,643.88 kl or nearly 50 percent.
Unlike ATF, gasoline and diesel prices will remain frozen for a record 132nd day in a row on Wednesday. The daily price review was postponed to November 4, 2021, just as elections to elect new governments began in states such as Uttar Pradesh and Punjab. Also LPG cooking gas prices have been frozen since October when they reached Rs 900 per cylinder.
This is despite a wild swing in international oil prices. Brent crude, the best-known international benchmark, stood at $82.74 a barrel on November 5, 2021, before starting to decline, reaching $68.87 a barrel on December 1. Prices rose to more than $139 a barrel last week after the Russia-Ukraine and are now trading at $101, well above the high of $86.40 on Oct. 26, 2021, which had led gasoline and diesel prices to record highs. rose.
Petrol costs Rs 95.41 per liter in Delhi and diesel costs Rs 86.67, price information from state fuel retailers showed. Record high pump pump prices prompted the government to cut excise duties on petrol by Rs 5 per liter and those on diesel by Rs 10. Many states have linked this to a reduction in local sales tax or VAT rates.
Before the tax cut, gasoline and diesel prices across the country had hit record highs. While petrol had crossed the Rs 100 per liter mark in most cities, diesel was above that level in nearly half of the country. In Delhi, petrol cost Rs 110.04 per liter and diesel Rs 98.42.
This post ATF price rose by steepest ever 18 pc to all-time high was original published at “https://www.financialexpress.com/market/commodities/atf-price-hiked-by-steepest-ever-18-pc-to-all-time-high/2462578/”