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Aviation fuels price slashed by 2.2%

BNE News Desk


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Guwahati: Oil marketing companies (OMCs) dropped jet fuel prices by 2.2%, as Brent prices continued to decline on growing concern about slowing growth.

The price of aviation turbine fuel (ATF) - the fuel that propels planes - was reduced by 3,084.94 per kilolitre, or 2.2 percent, to 138,147.93 per kilolitre, according to a price notification from state-run fuel dealers. The new pricing is for domestic carriers only.

This is only the second time this year that aircraft fuel prices have been reduced. In June, prices reached 141,232.87 per kl (141.23 per litre).

Prices vary per state as well, depending on the extent of local taxation. ATF prices are changed on the first and sixteenth of each month depending on benchmark world oil pricing from the previous two weeks.
There was no change in rates on July 1.

ATF accounts for over 40% of an airline's operational costs.

This is only the second time this year that rates have been reduced. ATF prices were also decreased on June 1 by Rs 1,563.97 per kilolitre, or 1.3 percent.

However, on June 16, the prices were raised by Rs 19,757.13 per kilolitre. Prices reached at Rs 141,232.87 per kilolitre during the month. Prices jumped by Rs 67,210.46 per kilolitre, or 91 percent, between January 1 and July 1.

Meanwhile, Indian airline leaders have formed a group to address the issue of rising ATF expenses in collaboration with public sector OMCs.

The committee is led by SpiceJet, GoFirst, and Indigo, with representation from Vistara and other airlines, as well as public sector OMCs such as Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation.

BNE News Desk