Jet fuel or aviation turbine fuel (ATF) prices in the national capital were hiked to Rs 1,01,396.54 per kilolitre (kl) from Rs 1,00,772.17 lakh on March 1.
In Mumbai and Chennai, ATF prices for domestic airlines have been hiked to Rs 94,809/kl from Rs 94,246/kl and Rs 1,05,399/kl from 1,04,840.19/kl, respectively.
ATF prices for domestic airlines on international runs have been revised to $921.4 in Delhi, $959.49 in Kolkata, $919.49 in Mumbai and $916.49 in Chennai.
Ahead of Budget 2024, the oil marketing companies had slashed ATF prices by Rs 1,221/kl on February 1.
State-owned Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum revise ATF prices on the first day of every month based on the average international price in the previous month.
The second half of last year saw a steady escalation in ATF prices with a cut taking in November 2023 as crude prices started to cool off.
ATF constitutes a significant portion of an airline's operational expenditures and often requires fare adjustments to accommodate the impact of increased costs. Lower ATF prices offer some reduction in airfares.
The revision of ATF prices is a common practice and is influenced by factors such as the average rate of the international benchmark and foreign exchange rates. These adjustments, often made every month, impact the overall operational expenses of airlines, providing relief or adding to the financial challenges they face, depending on the direction of the change.
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