The Indian Oil Corporation (IOCL) cut the price of jet fuel or Aviation Turbine Fuel (ATF) in Delhi by 1.3 percent to Rs 1.21 lakh per kilolitre (kl) today. This is the first price cut this year.
Earlier on May 16, IOCL had hiked the jet fuel prices by 5 percent taking it to Rs 1.23 lakh per kl. ATF prices have been on a steep climb, up 61.7 percent Rs 72,062 per kl to Rs 1.23 lakh per kl, since January.
Fuel rates have been increased in India because energy prices globally have risen on the back of supply concerns following Russia's invasion of Ukraine and demand returning after being hit by the pandemic. India is 85 percent dependent on imports to meet its oil needs.
Jet fuel, which makes up for almost 40 percent of the running cost of an airline, has this year surged to new highs.
The steepest hike of 18.3 percent came on March 16, followed by a 2 percent jump on April 1, a 0.2 percent rise on April 16 and another 3.22 percent hike on May 1. A total of 10 price hikes have taken place this year since January — reflecting a surge in global energy prices.
Rates differ across states, depending on the incidence of local taxation.