Jet fuel price on Tuesday, February 1 rose to record levels across the country following a steep 8.5% hike necessitated due to a spike in international oil prices.
While the jet fuel or Aviation Turbine Fuel (ATF) price has been hiked for the third time in a month, petrol and diesel prices remained unchanged for a record 88th day in a row.
ATF price was hiked by INR 6,743.25 per kilolitre or 8.5% to INR 86,038.16 per kl in the national capital, according to a price notification of state-owned fuel retailers.
This is the highest ever price touched by ATF. The rate is higher than INR 71,028.26 per kl reached in August 2008 when international crude oil prices touched USD 147 per barrel. Brent crude oil on Tuesday, February 1 was trading at USD 91.21 per barrel.
The price increase will put pressure on the already strained balance sheets of airlines.
Tuesday’s price hike is the third increase in a month. Rates were hiked by INR 2,039.63 per kl or 2.75% to INR 76,062.04 per kl on January 1 and then again by INR 3,232.87 per kl or 4.25% to INR 79,294.91 per kl on January 16.
These increases in the rate came on the back of two rounds of price cuts seen in December that reflected a drop in international oil prices during the second half of November and mid-December.
Thereafter, international rates have firmed up, leading to the hike in ATF prices.
ATF price had last peaked at INR 80,835.04 per kl in mid-November 2021 before it was cut on December 1 and 15 by a total of INR 6,812.25 per kl or 8.4%. Jet fuel prices are revised on the 1st and 16th of every month based on the average price of the international benchmark in the preceding fortnight.
This is despite a wild swing in international oil prices. Brent crude oil, the best-known international benchmark, was at USD 82.74 per barrel on November 5, 2021, before it started to fall and touch USD 68.87 a barrel on December 1.