Jet fuel price up by three per cent; petrol, diesel unchanged after hitting new highs

NEW DELHI: Jet fuel or ATF price on Saturday was hiked by 3 per cent - the fourth increase in two months on firming international oil prices, while petrol and diesel rates remained unchanged after hitting new highs.

Aviation turbine fuel (ATF) price was raised by Rs 1,512.38 per kilolitre, or 2.96 per cent, to Rs 52,491.16 per kl in the national capital, according to a price notification of state-owned fuel retailers. This is the fourth increase in price since December 1, 2020.

Rates had gone up by 7.6 per cent (Rs 3,288.38 per kl) on December 1, by 6.3 per cent (Rs 2,941.5 per kl) on December 16 and by Rs 1,817.62 (3.69 per cent) on January 1. ATF prices are revised on 1st and 16th of every month based on the average price of benchmark international rate and foreign exchange rate in the preceding fortnight.

In Mumbai, ATF price on Saturday went up to Rs 50,596.02 per kl from Rs 49,083.65 per kl. Prices vary from state to state depending on the incidence of local taxes.

The increase in the price of ATF, which makes for close to 40 per cent of the running cost of an airline, will put additional burden on airlines that have been struggling to return to normal business after COVID-19 lockdown had halted their operations.

After rising to record levels, petrol and diesel prices were unchanged for the second day on Saturday. Petrol on January 14 touched an all-time high of Rs 84.70 per litre in Delhi. In Mumbai, the price of petrol at Rs 91.32 a litre is just 2 paise lower than the highest ever rate of Rs 91.34 hit on October 4, 2018.

Diesel price in Mumbai, however, is at a record high of Rs 81.60 per litre. In Delhi, it comes for Rs 74.88 a litre, lower than its all-time high rate of Rs 75.45 a litre touched on October 4, 2018. The government had responded to the situation in October 2018, by cutting excise duty on petrol and diesel by Rs 1.50 per litre in a bid to ease inflationary pressure and boost consumer confidence.

Alongside, state-owned fuel retailers cut prices by another Re 1 a litre, which they recouped later. There are demands in some quarters for a reduction in excise duty to ease the burden on consumers. Excise duty totals Rs 32.98 per litre in petrol and Rs 31.83 in diesel.

VAT in Delhi totals to Rs 19.32 a litre on petrol and Rs 10.85 on diesel. With international oil prices rebounding from the lows of April, retail rates in India too were revised. Price notifications of oil companies showed that since May 2020, petrol price has risen by Rs 15.04 per litre and diesel by Rs 12.59 a litre.