A big relief news has emerged for the airlines. The prices of Aviation Turbine Fuel (ATF) for international flights were reduced by a huge 27 percent. However, there has been no change in the prices of jet fuel for domestic flights. Industry sources said that due to this cut, the prices of jet fuel for international flights have come down by more than $ 400 per kiloliter to about US $ 1,100 per kiloliter. Rates for these flights had increased by US$76.55, or 5.33 percent, to US$1,511.86 per kiloliter on May 1. Earlier in April, the rates had more than doubled to US $ 1,435.31 amid a huge surge in international energy prices.
No change in jet fuel for domestic flights
On the other hand, there has been no change in the price of ATF for domestic flights. Companies will continue to pay Rs 104,927.18 per kilolitre. This rate came into effect from April 1, when only one-fourth of the required increase was passed on to the airlines. The prices have remained unchanged since then. Despite the increase in international rates, government fuel retailers kept prices stable in May. They themselves bore the increased international costs to avoid burdening passengers. Now that international rates have softened, they have given the benefit of this reduction to foreign flights. Whereas they are still facing losses on domestic supplies.
When was this decision taken
In India, jet fuel prices were deregulated more than two decades ago, and since then, these prices have been determined in accordance with international market prices, as per a written agreement with the airlines. But according to industry sources, in view of the huge rise in global energy prices due to the ongoing war in West Asia, when the need was felt to make the biggest ever increase in ATF prices, the government and state oil companies decided to take a balanced and thoughtful step in this matter. He told that on one hand the fuel rates for international flights will be at the current rates. Also, prices for domestic flights have been controlled and kept low to some extent.
Increase in commercial LPG prices
Apart from this, oil companies have increased the prices of commercial LPG by Rs 42 per 19-kg cylinder, taking the rates to a record high. The price of this cylinder used by hotels, restaurants and other commercial establishments will now be Rs 3,113.50 in Delhi, which was earlier Rs 3,071.50. This latest hike follows the massive hike of Rs 993 implemented on May 1, which took commercial LPG prices to an all-time high. The prices of 5-kg free-trade LPG (FTL) cylinders have also been increased by Rs 11, taking their price to Rs 821.50 per cylinder.
Domestic consumers have been given relief from any increase. The price of a 14.2-kg domestic LPG cylinder has remained unchanged at Rs 913 since early March, when its price was increased by Rs 60 per cylinder. These changes are part of the price review conducted every month by government oil marketing companies. Prices vary from state to state depending on local taxes such as VAT. Sources said that ATF prices for domestic airlines are still kept below the cost.
No change in the prices of petrol and diesel
After increasing the prices of petrol and diesel by about Rs 7.50 per liter last month, there has been no change in the prices this time. Currently, the price of petrol in Delhi is Rs 102.12 per liter and the price of diesel is Rs 95.20 per liter. Airlines around the world are facing problems due to reduction in the supply of jet fuel due to the ongoing war in West Asia. The Strait of Hormuz – a vital route for energy flows around the world – remains virtually closed as the conflict now enters its fourth month; This is putting even more pressure on fuel availability and supply chain.
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