Aviation Turbine Fuel price touches record high: International travel fares expected to rise further – UKMALAYALEE

Aviation Turbine Fuel price touches record high: International travel fares expected to rise further

Monday 2 May 2022 8:27 AM UTC

NEW DELHI May 2: Jet fuel prices on Sunday were hiked by 3.22 per cent – the ninth straight increase this year — to an all-time high, reflecting a surge in global energy prices.

The price of aviation turbine fuel (ATF) – the fuel that helps aeroplanes fly – was hiked by ₹ 3,649.13 per kilolitre, or 3.22 per cent, to ₹ 1,16,851.46 per kl (Rs 116.8 per litre) in the national capital, according to a price notification of state-owned fuel retailers.

Meanwhile, petrol and diesel prices remained unchanged for the 25th straight day after rising by a record ₹ 10 per litre each. While jet fuel prices are revised on the 1st and 16th of every month, petrol and diesel rates are revised daily based on equivalent rates in the international market.

The increase in ATF price comes on the back of the steepest ever hike of 18.3 per cent (Rs 17,135.63 per kl) effected on March 16 and a 2 per cent (Rs 2,258.54 per kl) increase on April 1. Prices were increased by a marginal 0.2 per cent on April 16.

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 per cent dependent on imports to meet its oil needs.

Jet fuel, which makes up for almost 40 per cent of the running cost of an airline, has this year surged to new highs. ATF prices have increased every fortnight since the start of 2022. In the nine hikes beginning January 1, ATF prices have been increased by ₹ 42,829.55 per kl (Rs 42.8 per litre) or over 50 per cent.

Some of the international carriers were fast enough to increase their airfares due to the fuel price increase during this week and the same is expected to rise further, in an event the fuel prices go up more,” said Jay Bhatia, vice-president, Travel Agents Association of India.

“The domestic fares have yet to see the impact of the fuel price rise.”

Bookings for business class seats on flights and five-star hotels have already doubled compared to pre-pandemic numbers as a percentage of total reservations.

“Ideally, airfares should go down, but we have this looming crisis of the Ukraine war which has caused oil prices to rise sharply,” said aviation sector analyst Vinamra Longani. – PTI

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