Prices of jet fuel hiked by 16.3%, hit an all-time high in national capital

16 Jun 2022 , 11:12 AM

In Delhi, the price of aviation turbine fuel (ATF), which propels planes, has risen 16.3% to an all-time high of Rs1.41 lakh per kilolitre. In 2022, the price of ATF has nearly doubled, rising 91% in the last six months.

On June 3, jet fuel prices dropped by 1.3%, the first decrease following ten rounds of price hikes, due to lower worldwide crude oil prices. ATF rates in the national capital were raised by 5% in May, bringing it to Rs1.23 lakh per kilolitre. The information is from a price notification of state-owned fuel retailers.

Jet fuel accounts for more than 40% of an airline’s operating costs, therefore the price increase is projected to affect air travel costs. As lockdown restrictions around the country are on the decline, rising traveling costs are surely expected to hamper tourist sentiments. Since
January, the price of jet fuel has risen steadily, rising from Rs72,062 per kilolitre to Rs1.41 lakh per kilolitre currently.

Fuel prices in India skyrocketed in 2022, owing to supply concerns amid the ongoing Russia-Ukraine conflict and an increase in demand following the lifting of pandemic-related restrictions.