Aviation fuel (ATF) prices were reduced by 2.2 percent on Saturday, July 16, 2022, reflecting a drop in international oil prices.
ATF prices were reduced by ₹3,084.94 per kilolitre, or 2.2 percent, to ₹138,147.93 per kilolitre, according to a price notification from state-run fuel retailers. This is only the second rate cut this year. Last month, prices reached ₹141,232.87 per kl (₹141.23 per litre).
ATF prices are revised on the first and sixteenth of every month based on benchmark international oil rates from the previous two weeks. On July 1, there was no change in rates. Prior to that, prices were raised by the steepest ever 16 percent, causing interest rates to reach an all-time high.
Since then, international oil prices have fallen due to fears of recession in major economies. Oil prices have been brought back to pre-Ukraine war levels. The price of ATF — the fuel that propels aeroplanes — was raised by ₹19,757.13 per kl on June 16. This came after a 1.3 percent (1,563.97 per kl) rate cut on June 1.
Despite the one-time decrease on June 1, ATF prices are expected to rise throughout 2022. Rates have been raised 11 times since the beginning of the year. This has resulted in rates nearly doubling in six months.
Prior to Saturday’s reduction, prices had risen by 91 percent (₹67,210.46 per kl) since January 1. With jet fuel accounting for nearly 40% of an airline’s operating costs, the price increase had resulted in an increase in the cost of flying. Now there has been marginal relief.
Rates for petrol and diesel remain unchanged
Meanwhile, petrol and diesel prices remained unchanged at ₹96.72 and ₹89.62 cents per litre, respectively. On May 22, the government cut excise duty, which helped lower the price of petrol by $8.69 per litre and diesel by $7.05 per litre. However, the base price has remained constant since April 6. Prior to that, prices had risen by a record ₹10c per litre.
The retail prices of fuel, diesel, and domestic cooking gas are significantly lower than the cost. Petrol and diesel prices are updated daily based on international market equivalents.