The 3.22% price hike takes Aviation Turbine Fuel (ATF) beyond upper limits

Post By : Rachayita Sidharth
Post Date : May 3, 2022
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Global energy prices have been on the rise lately, most of which can be attributed to the prevailing geopolitical conditions. Not just the prices of diesel and petrol, but even that of Aviation Turbine Fuel (ATF) have surged beyond the upper limit, breaking records. The ATF saw a surge of 3.22% or INR 3,649.13 per kilolitre, now clocking in at INR 1,16,851.46 per kilolitre in the Capital. The news comes from a price notification of state-owned fuel retailers.

Along with ATF, petrol and diesel prices also remained change for 25th day, after being increased by INR 10.00 per litre. The increase in ATF price comes on the back of the steepest ever hike of 18.3% (INR 17,135.63 per kilolitre) effected on March 16 and 2% (INR 2,258.54 per kilolitre) increase on April 1. Prices were increased by a marginal 0.2% on April 16.

ATF in Mumbai now costs INR 1,15,617.24 per kilolitre, while it is priced at INR 1,21,430.48 per kilolitre in Kolkata and INR 1,20,728.03 per kilolitre in Chennai.

ATF prices are revised on the 1st and 16th day of every month, to be in sync with the international price of benchmark fuel in the previous fortnight. Last month, international crude oil prices had climbed to a 14-year high of USD 140 a barrel and have since cooled off but stay elevated above USD 100 a barrel, causing the ATF prices to witness multiple surges.

Since ATF contributes a major chunk towards the OPEX of air carriers, it is certain that increase in ATF prices will have a negative impact on the passenger as well as cargo transportation fares. Considering that the air cargo sector in still in the recovery phase, the recent price surge does not point at a speedy recovery – even though this is being termed as a temporary situation by the experts.

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