New Delhi — In an unprecedented move on Friday, airline companies are bracing for a potential hike in air ticket prices, following a substantial increase in the cost of Aviation Turbine Fuel (ATF). The reason? A sharp 14% jump in jet fuel prices, marking the steepest rise ever recorded.
According to a notification from state-owned fuel retailers, the price of Aviation Turbine Fuel in Delhi has been hiked by Rs 13,911.07 per kilolitre. The revised cost now stands at Rs 1,12,419.33 per kl. Notably, the prices of jet fuel can vary across different states, primarily due to the varied application of local sales tax or VAT.
Historically, the fuel’s pricing has exhibited a volatile pattern. In August, there was an 8.5% price hike, translating to an increase of Rs 7,728.38 per kl. The preceding month, July, had witnessed a rise of 1.65% or Rs 1,476.79 per kl. The fluctuation in jet fuel prices is not an isolated occurrence restricted to India. Reports indicate a global trend with jet fuel prices amplifying, closely mirroring the upward trajectory of global crude oil prices.
A systematic protocol is in place when it comes to revising fuel prices. Major players in the industry, such as the state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), assess international prices of key commodities, including cooking gas and ATF. Based on these assessments, the prices are revised every month on the 1st.
On a brighter note, while air travelers might be tightening their belts for the fare hikes, households have received some financial respite. Two days prior, domestic LPG cylinder prices were reduced by a substantial Rs 200 for all consumers. Following suit, the commercial LPG cylinder too witnessed a price cut on September 1. The revised price stands at Rs 1,522.50 for a 19-kg commercial LPG cylinder in the national capital. This reduction follows a Rs 100 cut per commercial LPG cylinder that had been implemented from August 1.
In an effort to expand the reach of clean cooking fuel, the Centre gave its nod for 75 lakh additional Ujjwala connections. This move will push the total number of beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) to a whopping 10.35 crores. The PMUY initiative has been instrumental in providing subsidized LPG connections to households below the poverty line, ensuring cleaner cooking solutions.
However, it’s not just the ATF and LPG sectors experiencing price fluctuations. The prices of two major fuels, petrol and diesel, have showcased a peculiar trend. For a record 17 consecutive months, these prices have remained unchanged. As of now, in Delhi, petrol is priced at Rs 96.72 per litre, while diesel retails at Rs 89.62 per litre.
The sudden surge in jet fuel prices, coupled with the ongoing global economic scenario, is likely to impact the airline industry’s recovery process post the pandemic-induced slump. As the industry grapples with these new challenges, the common man continues to keep a wary eye on the ever-changing landscape of fuel prices. Whether it’s air travel or domestic cooking, the price of fuel touches every aspect of daily life, and its fluctuations play a crucial role in the household and national economic outlook.
In the midst of fluctuating jet fuel and LPG prices, petrol and diesel have held steady, with Delhi witnessing unchanged prices for 17 straight months. Currently, petrol is available at Rs 96.72 per litre and diesel at Rs 89.62 per litre. This stability presents a stark contrast to the turbulence observed in other fuel sectors.
