The hike, which follows a marginal reduction of 1.3% (Rs 1,563.97 per kl) in the rate earlier this month, takes jet fuel prices to a record high across the country.
This increase goes hand in hand with the strengthening of international oil prices. Brent crude – the world’s most popular crude oil benchmark – was trading at $119.16 a barrel on Thursday – the highest in nearly a decade.
ATF prices are revised on the 1st and 16th of each month on the basis of the average of the international reference rates.
Rising kerosene prices will increase airline operating costs. ATF accounts for up to 40% of an airline’s operating costs.
The June 1 cut came after 10 rounds of price increases this year.
ATF in Mumbai now costs Rs 1,40,092.74 per kl, while it is priced at Rs 1,46,322.23 in Kolkata and Rs 1,46,215.85 in Chennai.
Rates differ from state to state, depending on the incidence of local taxation.
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 petrol by Rs 8.69 per liter and diesel by Rs 7.05 per liter on May 22, but for this the base price has remained unchanged since April 6. Before that, prices had risen by a record high. Rs 10 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.
Fuel prices rose in India because global energy prices rose due to supply problems following Russia’s invasion of Ukraine and the return of demand after being hit by the pandemic. India is 85% dependent on imports to meet its oil needs.
To make matters worse, the rupee depreciated against the US dollar, making imports more expensive.