Air travel to get costlier? Jet fuel prices hiked by a record 18%

The increase - sixth straight this year - led to prices soaring past the Rs 1-lakh-per-kilolitre mark for the first time ever

Aviation turbine fuel prices saw the sixth successive hike since January 1, topping Rs 1 lakh per kl after crude oil prices climbed to 14-year high of $140 per barrel last week on fears of supply disruption from the Russia-Ukraine crisis.

The latest increase was Rs 17,135.63 per kl or 18%, which was the steepest ever. In the national capital, jet fuel prices went up to Rs 1,10,666.29 per kl while in Mumbai, it cost Rs 1,09,119.83 a kl and in Kolkata Rs 1,14,979.70. At Chennai, the fuel was Rs 1,14,133.73 per kl .

Jet fuel prices have increased every fortnight since the start of this year. Price has been hiked by almost 50% or Rs 36,643.88 per kl since January.

The petrol and diesel prices have, however, not been increased by over four months now and the government has said that it will take steps to insulate the common man from rising prices if need be. Cooking gas (LPG) prices have also not been revised since October.

ATF prices are revised on the 1st and 16th of every month based on the average international price of benchmark fuel in the preceding fortnight. Jet fuel makes up almost two-fifth of the running cost of an airline.

In the six hikes beginning January 1, ATF prices have been increased by Rs 36,643.88 kl or almost 50 per cent.

Unlike ATF, petrol and diesel prices continue to remain on freeze for a record 132nd straight day on Wednesday. The daily price revision was put on hold on November 4, 2021, just as electioneering to elect new governments in states like Uttar Pradesh and Punjab started.

Cooking gas LPG prices too have been on freeze since October, when they touched Rs 900 per cylinder.

This is despite a wild swing in international oil prices. Brent crude oil, the best-known international benchmark, was at $82.74 per barrel on November 5, 2021, before it started to fall and touched $68.87 a barrel on December 1.

Prices climbed to over $139 per barrel last week following the Russia-Ukraine crisis and are now trading at $101, well above the peak of $86.40 touched on October 26, 2021, which had led to petrol and diesel prices spiking to an all-time high.

Petrol costs Rs 95.41 a litre in Delhi and diesel is priced at Rs 86.67, price information from state fuel retailers showed.

The record-high retail pump prices prompted the government to cut excise duty on petrol by Rs 5 a litre and that on diesel by Rs 10. Many states matched this with a reduction in local sales tax or VAT rates.

Before the excise duty cut, petrol and diesel prices had touched an all-time high across the country. While petrol had crossed the Rs 100 a litre mark in most cities, diesel was above that level in nearly half the country. In Delhi, petrol was Rs 110.04 a litre and diesel was Rs 98.42.

With PTI inputs.

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