Prices for aviation turbine fuel (ATF) or jet fuel have reportedly been reduced $5 per liter on Wednesday, a development that comes amid a decline in global oil prices due to the cessation of fighting in West Asia.
Aviation turbine fuel (ATF) is now more expensive $110 liters in Delhi, news agency PTI reported, citing industry sources.
This is the first reduction since the West Asia crisis, which sent jet fuel prices to a record high, and comes amid an easing of tensions in the region rocked by the exchange of missiles and drones between the United States, Israel and Iran. The exchange of fire led to a halt in the movement of ships in the Strait of Hormuz, the main waterway through which a fifth of the world’s oil and gas needs passed before the US-Iran war.
Amid severe energy supply disruptions due to conflict in the oil-rich Gulf region, ATF prices initially rose on April 1, with Indian Oil Corp showing a Delhi price of $2,07,341.22 per kiloliter, an increase of 114.55 percent over $96,638.14 per Kuala Lumpur. The sharp increase was linked to the rise in global energy prices after the closure of the Strait of Hormuz.
However, after government intervention, oil marketing companies eased the increase in scheduled domestic airlines. The final ATF rate applicable to local carriers in Delhi has been revised to $1,04,927 per Kuala Lumpur, an increase of about 8.5 per cent over March levels.
Non-scheduled operators, including charter operators, continued to face the higher ATF rate initially reported by the IOC.
“Later in the day, after the government intervened and directed them not to pass on the entire ATF fares to the airlines, they revised the ATF fares on domestic routes,” said an OMC executive, requesting anonymity.
While the government has revised ATF fares for scheduled domestic airlines ( $1,04,927 per Kuala Lumpur effective April 1), private jets, charter planes and non-scheduled domestic airlines will pay higher rates $207,341.22 per Kuala Lumpur as of Wednesday,” said another OMC executive who requested anonymity.
Subsequently, the IOC website revised the ATF price for local routes in Delhi to $1,04,927 per kiloliter as of April 1.
Later, the Oil Ministry said in a post on the
“In order to insulate domestic travel costs from the significant increase in international prices, the oil marketing companies affiliated with the Ministry of Petroleum, in consultation with the Ministry of Civil Aviation, only made a partial and intermittent increase of 25% (only). $15/litre) for airlines. It added that overseas lines would pay for the full ATF fare increase in line with what they pay in other parts of the world.
