Oil marketing companies (OMCs) on Tuesday hiked aviation turbine fuel (ATF) prices by about 8% over last month as global crude oil prices firmed on improved demand.<\/p>\n
ATF or Jet fuel prices have risen about 18% since 1 January. <\/p>\n
ATF prices, which are revised every 15 days, stood at Rs60,261.16 per kilolitre (kl) in New Delhi on 16 March, up from Rs50,978.78 per kl on 1 January, and Rs59,400.91 per kl on 1 March, according to Indian Oil Corp. Ltd. <\/p>\n
Jet fuel accounts for about a fourth of expenses for major domestic airlines. The rising fuel prices, along with a dip in domestic air passenger traffic numbers due to fresh spurt in coronavirus infections, and the resulting travel restrictions by some states pose challenges to recovery in the aviation sector. <\/p>\n
ATF prices, which have been on a rise since October, were earlier increased to Rs55,737.91 per kl in New Delhi on 16 February from Rs53,795 per kl on 1 February. <\/p>\n
As of Tuesday, ATF prices in Mumbai stood at Rs58,366.02 per kl, in Chennai it was at Rs61,503.43 per kl and in Kolkata it was at Rs64,633.56 per kl. <\/p>\n
According to data from credit rating agency Icra, ATF prices have increased sequentially by 24.1% in July 2020 and by 4.2% in August 2020, before it declined sequentially by 3.4% in September 2020 and by 5.6% in October 2020, and eventually rising again by 4.6% in November 2020, 9.1% in December 2020, 10.2% in January 2021, and 5.4% in February 2021 (as on 1 February 2021). <\/p>\n
The price of Brent crude stood at $68.27 a barrel on Tuesday, a rise by 127% on an annual basis, according to Bloomberg data. <\/p>\n
A continuous rise in jet fuel price is set to bring up costs for airlines, which are currently struggling financially due to the pandemic. <\/p>\n
“The government should consider urgently bringing petroleum products and jet fuel under the GST (goods and services tax) regime,” said a senior airline official, who spoke on the condition of anonymity. <\/p>\n
“As things stand, jet fuel prices in India are highly taxed and prevent our airlines from being competitive with some of the global carriers ,” the official added.<\/p>\n","protected":false},"excerpt":{"rendered":"
Oil marketing companies (OMCs) on Tuesday hiked aviation turbine fuel (ATF) prices by about 8% over last month as global crude oil prices firmed on improved demand. ATF or Jet fuel prices have risen about 18% since 1 January. ATF prices, which are revised every 15 days, stood at Rs60,261.16 per kilolitre (kl) in New Delhi on 16 March, up from Rs50,978.78 per kl on 1 January, and Rs59,400.91 per kl on 1 March, according to Indian Oil Corp. Ltd. Jet fuel accounts for about a fourth of expenses for major domestic airlines. The rising fuel prices, along with a […]<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-405218","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/405218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=405218"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/405218\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=405218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=405218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=405218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}