Central Government Cuts Jet Fuel Prices by Rs. 1,221 Per Kl Prior to Union Budget
On the 1st of February, the Central government implemented a noteworthy reduction in aviation turbine fuel (ATF) prices, slashing them by Rs 1,221 per kiloliter in Delhi, just ahead of the Interim Budget. This marks the fourth consecutive month witnessing a decline in jet fuel prices. Following this latest adjustment, domestic airlines operating in Delhi will now incur a cost of Rs 1,00,772.17 per kiloliter for ATF. Similarly, airlines in Kolkata, Mumbai, and Chennai will face revised rates of Rs 1,09,797.33, Rs 94,246.00, and Rs 1,04,840.19 per kiloliter, respectively.
These revised rates took effect from February 1, offering a welcomed reprieve to airlines grappling with financial challenges, given that jet fuel constitutes a substantial 40% of their operational expenses. The move is expected to ease the financial burden on airlines in the wake of persisting economic challenges.
It is important to note that Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) regularly review and adjust the prices of both cooking gas and ATF on the first day of each month. These adjustments are determined based on the average international prices observed in the preceding month, showcasing the government's commitment to maintaining a fair and dynamic pricing mechanism in the aviation sector.