NEW DELHI: The price of aviation turbine fuel (ATF) in Delhi was increased on Tuesday by Rs 5,494.50 per kilolitre (kl), or 16.3 per cent, to Rs 39,069.87 per kilolitre. This is the second time in the current month when prices of ATF have been increased significantly by oil marketing companies. Earlier, on June 1, the prices of ATF were hiked by a record 56.5 per cent or Rs 12,126.75 per kilolitre.ATF prices are revised on the 1st and 16th of every month by oil companies.
The increase in retail prices of jet fuels comes at a time when global oil prices have begun recovering after falling to record lows in April. According to industry experts, the increase in prices will improve the earnings of OMCs. However, for airlines who have just resumed their operations, the price increase does not portend good times.
“We wanted to reap the benefits of very low fuel prices as the aviation industry is going through its worst phase. The prices, which are still low, is nowhere near the price levels of last month when flights were suspended,” said a senior executive of a private airline.
Jet fuel prices had come down to Rs 21,448.62 per kilolitre last month from Rs 64,323.76 per kilolitre in February. ATF makes up for as much as 40 per cent of an airline’s running cost. Separately, the International Air Transport Association also warned that the airline industry faces a hard winter and called on governments to continue providing relief measures. Global airlines are expected to post $84.3 billion in losses this year.