Jet Fuel Rates Hit Fresh All-Time High, Steepest Hike Ever

New Delhi: Jet fuel or aviation turbine fuel (ATF) price saw its steepest all-time hike on Wednesday. The rate has been increased by 18.32 per cent to record Rs 1,10,666.26 per kilolitre (kl) from Rs 93,530.66 per kl, according to a price notification issued by state-owned fuel retailers..The rate surged past the Rs 1 lakh per kl mark for the first time..Jet fuel, which makes up for almost 40 per cent of the running cost of an airline, has this year surged to new highs..This is the sixth hike in jet fuel prices in 2022 and the second in March amid a spike in global crude oil rates..Jet fuel prices are revised on the 1st and 16th of every month based on the average international price of benchmark fuel in the preceding fortnight..In Mumbai, ATF price soared to Rs 109,119.83 a kl and it costs Rs 114,979.70 in Kolkata. Jet fuel is priced at Rs 114,133.73 per kl in Chennai..Globally, oil prices, which had traded lower early in the session, turned higher today, with Russia's invasion of Ukraine continuing to stoke volatile trade. Brent crude rose 1.26 per cent to $101.17 per barrel, and U.S. crude added 0.93 per cent to $97.34 per barrel.."Over the past few weeks, the crude oil prices have soared to a 7-year high nearing $140 per barrel, due to the ongoing conflict in Europe. This has resulted in over 50 per cent ATF price hike by from January 2022 till date, including the 18 per cent hike today. This situation adversely impacts us, given that ATF constitutes over 45 per cent of our operational costs. We have been in talks with the government to bring ATF under GST as it brings the benefit of input tax credit," IndiGo Chief Executive Ronojoy Dutta said.."We believe that such measures are needed now more than ever to offset this increase in cost and make flying viable for airlines and affordable for consumers. A rationalization of taxes will result in high growth for the sector, creating a multiplier effect throughout the economy, promoting trade, tourism and job creation," he added..In contrast to the ATF price hike, petrol and diesel rates have been kept unchanged across the metro cities in India for over four months.

Jet Fuel Rates Hit Fresh All-Time High, Steepest Hike Ever

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