Jet fuel prices on Wednesday soared to record high ranges throughout the nation after charges had been elevated by 5.2 per cent in step with an increase in worldwide oil prices.
This is the fourth hike in jet fuel or Aviation Turbine Fuel (ATF) prices in lower than two months following a spike in world oil prices however petrol and diesel prices remained unchanged for a record 103rd day in a row, coinciding with electioneering to elect new governments in states like Uttar Pradesh and Punjab.
ATF worth was hiked by Rs 4,481.63 per kilolitre or 5.2 per cent to Rs 90,519.79 per kl within the nationwide capital, in accordance to a worth notification of state-owned fuel retailers.
This is the very best ever worth touched by ATF. The fee is larger than Rs 71,028.26 per kl reached in August 2008 when worldwide crude oil prices touched USD 147 per barrel. Brent crude oil on Tuesday was buying and selling at USD 93.87 per barrel.
The improve in worth will put strain on the already strained stability sheets of airways which might be but to resume full operations due to pandemic-related restrictions.
Wednesday’s worth improve is the fourth hike this 12 months. Rates had been hiked by Rs 2,039.63 per kl or 2.75 per cent to Rs 76,062.04 per kl on January 1 after which once more by Rs 3,232.87 per kl (4.25 per cent) to Rs 79,294.91 per kl on January 16. They went up by Rs 6,743.25 per kl or 8.5 per cent to Rs 86,038.16 on February 1.
With 4 hikes, ATF prices have gone up by Rs 16,497.38 per kl.
These hikes within the fee got here on the again of two rounds of worth cuts seen in December that mirrored a drop in worldwide oil prices throughout the second half of November and mid-December.
Thereafter, worldwide charges have firmed up, main to the hike in ATF prices.
ATF prices had final peaked at Rs 80,835.04 per kl in mid-November 2021 earlier than it was lower on December 1 and 15 by a complete of Rs 6,812.25 per kl or 8.4 per cent.
Jet fuel prices are revised on the first and sixteenth of each month based mostly on the common worth of the worldwide benchmark within the previous fortnight.
Unlike ATF, petrol and diesel charges are revised every day after taking the common worth within the previous fortnight. But prices have remained unchanged since November 4, 2021, when the central authorities had lower excise obligation on petrol by Rs 5 per litre and that on diesel by Rs 10 a litre.
This is regardless of a wild swing in worldwide oil prices. Brent crude oil, the best-known worldwide benchmark, was at USD 82.74 per barrel on November 5, 2021, earlier than it began to fall and touched USD 68.87 a barrel on December 1.
Prices have climbed since and are actually close to USD 94, properly above the height of US$86.40 touched on October 26, 2021, which had led to petrol and diesel prices spiking to an all-time high.
Petrol prices Rs 95.41 a litre in Delhi and diesel is priced at Rs 86.67, worth data from state fuel retailers confirmed.
Before the excise obligation lower, petrol and diesel prices had touched an all-time high throughout the nation. While petrol had crossed the Rs 100 a litre mark in most cities, diesel was above that stage in practically half the nation.
In Delhi, petrol was Rs 110.04 a litre and diesel was Rs 98.42.
Prices had eased from an all-time high on November 4, 2021, after the Union authorities had lower excise obligation on petrol by Rs 5 per litre and diesel by Rs 10 a litre.
States had additionally lower native gross sales tax or VAT on the 2 fuels — BJP-ruled states on the identical day and a few others at differing dates thereafter. But apart from these two, the idea charges have remained unchanged.
(Only the headline and film of this report might have been reworked by the Business Standard employees; the remainder of the content material is auto-generated from a syndicated feed.)