Prices of aviation turbine fuel (ATF) dropped by 1.3 percent to Rs 121,475.74 per kilolitre (Kl)in Delhi, according to the Indian Oil Corporation on Wednesday. The ATF rates in Kolkata stood at Rs 126,369.98 per kilolitre. In Mumbai, the prices touched Rs 120,306.99 kiloper litre and in Chennai, ATF prices were at Rs 125,725.36 per kilolitre. The corporation said these prices were applicable from June 1.
Jet fuel, which makes up for almost 40 percent of the running cost of an airline, had surged to new highs this year. Wednesday's drop in ATF prices in the national capital came after months of the hike in rates.
In April this year, jet fuel prices were hiked by 2 percent to Rs 1,12,924.83 per kilolitre in the national capital. Prices further surged by a marginal 0.2 percent on April 16.
Later, on May 1, ATF prices hit all-time-high -- witnessing the ninth straight increase this year. Prices were then surged by Rs 3,649.13 per kilolitre or 3.22 percent to Rs 1,16,851.46 per kilolitre (Rs 116.8 per kilolitre) in the national capital.
According to reports, on May 16, jet fuel prices further increased by 5 percent, pushing rates to Rs 1.23 lakh per kilolitre in Delhi.
The latest drop inATF price comes on the back of the steepest ever hike of 18.3 percent (Rs 17,135.63 per kilolitre) effected on March 16.
Meanwhile, prices of 19-kg commercial LPG cylinders reduced by Rs 135 per cylinder. It will now cost Rs 2,219 in Delhi. In Kolkata, these cylinders will cost Rs 2,322 and in Mumbai, the price has been capped at Rs 2171.50. Besides, in Chennai, the cost of cylinders will be Rs 2,373. There was no change in rates of domestic LPG cylinder.
Fuel rates increased in India owing to the rise in energy prices globally in the backdrop of supply concerns following Russia's invasion of Ukraine. Moreover, the global demand for fuel has returned after being hit by the pandemic. India is 85 percent dependent on imports to meet its oil needs.
(Edited by : Akriti Anand)
First Published: Jun 1, 2022 10:13 AM IST
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