Delhi Slashes Aviation Fuel Prices by ₹1,221/kg Ahead of Budget 2024

1 Feb 2024 , 11:36 AM

In advance of the highly anticipated Interim Budget, the Central government cut the price of jet fuel, or ATF, in the nation’s capital on Thursday by ₹ 1,221 per litre. The price of jet fuel has dropped for the past four consecutive months.

ATF rates for domestic flights were ₹ 1,00,772.17 per km in Delhi, ₹ 1,09,797.33 per km in Kolkata, ₹ 94,246.00 per km in Mumbai, and ₹ 1,04,840.19 in Chennai following the most recent increase.

The revised rates will take effect on February 1.

Jet fuel accounts for 40% of an airline’s operating costs, therefore a decrease in price will help the already financially strapped carriers.

Furthermore, there has been a ₹ 14 increase in the price of liquefied petroleum gas (LPG). Particularly impacted by the price increase are 19-kilogram commercial LPG gas cylinders, which have seen an increase of ₹ 14.

The price shift for LPG is expected to have an impact on a number of industries and companies that use commercial LPG for their operations.

Every month on the first, the government-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) adjust the pricing of cooking gas and ATF by using the preceding month’s average international price.

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