On Saturday, jet fuel (ATF) prices were cut 2.2%, reflecting a fall in international oil prices.
Aviation turbine fuel (ATF) prices have been reduced by Rs 3,084.94 per kilolitre, or 2.2 per cent, to Rs 138,147.93 per kl, according to a price notification from fuel retailers managed by the state.
This is only the second rate cut this year. Prices had peaked at Rs 141,232.87 per kl (Rs 141.23 per liter) last month.
ATF prices are revised on the 1st and 16th of each month based on the international oil reference rates of the previous fortnight.
There were no rate changes on July 1.
Before that, prices were raised by 16%, the highest on record, to catapult rates to an all-time high.
International oil prices have since fallen on fears of a recession in major economies. Oil prices are at pre-war levels in Ukraine.
On June 16, the price of ATF – the fuel that helps planes fly – was increased by Rs 19,757.13 per kl. This follows a marginal 1.3% (Rs 1,563.97 per kl) cut in the rate on June 1.
But for the June 1 one-time drop, ATF prices have been rising throughout 2022.
In total, tariffs have been increased 11 times since the beginning of the year. This led to rates that nearly doubled in six months.
Prior to Saturday’s reduction, prices had risen by 91% (Rs 67,210.46 per kl) since 1 January.
With kerosene accounting for nearly 40% of an airline’s operating costs, rising prices have translated into higher flight costs. Now there has been marginal relief.
Meanwhile, petrol and diesel prices remained unchanged at Rs 96.72 per liter and Rs 89.62 per litre, respectively.
A reduction in excise duty by the government had reduced the price of petrol by Rs 8.69 per liter and diesel by Rs 7.05 per liter on May 22. But for that, the base price has remained unchanged since April 6.
Prior to this, prices had risen by a record 10 rupees per liter each.
Retail prices for gasoline, diesel and domestic cooking gas are well below cost. Gasoline and diesel prices are revised daily, based on equivalent international market prices.
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