ATF Prices Raised For Third Straight Month; Airlines Face Higher Fuel Costs

Aviation turbine fuel will cost more for airlines starting December as oil marketing companies hiked prices by an average of Rs 5,113.75 per kilolitre, marking the third consecutive monthly increase.

With the latest revision, ATF now stands at Rs 99,676.77 per kilolitre in Delhi, Rs 1,02,371.02 per kilolitre in Kolkata, Rs 93,281.04 per kilolitre in Mumbai, and Rs 1,03,301.80 per kilolitre in Chennai, adding fresh pressure on airline operating costs.

Earlier in November, Aviation turbine fuel prices were hiked by about 1% while commercial LPG rates cut marginally by Rs 5 per cylinder. Last month the price was increased by Rs 777 per kilolitre to Rs 94,543.02 per kilolitre in the national capital.

In October, prices were raised by Rs 3,052.5 per kl or 3.3%. Prior to that rates were cut by 1.4% or Rs 1,308.41 per kilolitre on September 1.

The latest hike adds to the financial strain on commercial airlines, where fuel accounts for nearly 40% of operating expenses. Prices of aviation turbine fuel (ATF) and cooking gas are revised on the first day of every month by state-run oil marketing companies, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), based on the average international benchmark rates and prevailing foreign exchange levels.

Meanwhile, domestic petrol and diesel prices remain unchanged. The last revision came in mid-March last year, when rates were cut by Rs 2 per litre ahead of the general elections.