Oil marketing companies (OMCs) have raised prices of aviation turbine fuel (ATF) by about 9% in the past month and by more than 80% in the last one year, adding to the woes of Indian carriers seeking to emerge from the widespread disruptions caused by the pandemic.
Jet fuel makes up 30-40% of the cost of running an airline in India and any increase will hurt the profit margins of airlines.
Refiners have been raising jet fuel prices as global crude oil prices firmed up on improved demand. ATF prices are revised every fortnight.
ATF currently costs ₹72,582.16 per kiloliter (kl) at New Delhi, up from ₹66,527 per kilo litre a month ago, according to Indian Oil Corp. Ltd (IOCL).
