Description-: Jet fuel makes up 40 percent of the running cost of an airline. ATF prices went up every fortnight since the beginning of 2022. Fuel rates have been hiked in India on the back of rising energy prices globally due to Russia’s invasion of Ukraine and demand hit by the pandemic.
The Indian Oil Corporation (IOC) has hiked jet fuel prices by 5 percent, taking it to Rs 1.23 lakh per kilolitre in Delhi on May 16th, 2022.
Notably, prior to this, aviation turbine fuel (ATF) prices were raised on May 1 by 3.22 percent on the back of a surge in global energy prices. After this hike, ATF cost Rs 1,16,851.46 per kl in Delhi, Rs 1,15, 617.24 per kl in Mumbai, Rs 1,21,430.48 per kl in Kolkata and Rs 1,20,728.03 in Chennai.
Rates were hiked by 18.3 percent on March 16 and 2 percent on April 1. Prices were also increased by 0.2 percent on April 16. In the nine hikes since January 1, ATF prices have been increased by Rs 72.062 per kl to Rs 1.23 lakh per kilolitre.
Jet fuel makes up 40 percent of the running cost of an airline. ATF prices went up every fortnight since the beginning of 2022. Fuel rates have been hiked in India on the back of rise in energy prices globally due to Russia’s invasion of Ukraine and demand hit by the pandemic. India is 85 percent dependent on imports to meet its oil needs.
Meanwhile, the prices of petrol and diesel have remained steady for 40 days now. Fuel prices were last hiked on April 6 by 80 paise a litre each.
According to a price notification from fuel retailers, petrol in Delhi costs Rs 105.41 per litre and diesel Rs 96.67 per litre. In Mumbai, petrol and diesel prices per litre are at Rs 120.51 and Rs 104.77 respectively. In Chennai, petrol costs Rs 110.85 per litre and diesel Rs 100.94 per litre.
The OMCs (oil marketing companies) started to increase retail prices of petrol and diesel from March 22. In March, petrol and diesel prices were hiked Rs 6.40 per litre each. And, in April they were raised by Rs 3.60 per litre each. So, there is a net increase of Rs 10 per litre each.
India is 80 percent dependent on imports for meeting its oil needs and so retail rates adjust accordingly to the global movement in crude prices. Daily, oil marketing companies (OMCs) adjust the rates of petrol and diesel depending on the average price of benchmark fuel in the worldwide market over the previous 15 days and foreign exchange rates. Every day at 6 am, any changes in petrol and diesel prices take effect.
India, the world’s third-biggest oil consuming and importing nation, spent $119.2 billion in 2021-22 (April 2021 to March 2022), up from $62.2 billion in the previous fiscal year, according to data from the oil ministry’s Petroleum Planning & Analysis Cell (PPAC).
Global oil prices today
Oil prices dropped today i.e. 16th may as investors took profits after a surge in the previous session and global supply fears loomed with the European Union preparing to phase in a ban on imports from Russia. Brent crude futures were down 0.6 percent at $110.91 per barrel.
