Published on Jan 02, 2019 04:19:00 PM
Due to a decline in international rates, Aviation Turbine Fuel (ATF) prices were cut by a record 14.7 percent on January 1, 2019. The price reduction has made ATF cheaper than petrol and diesel in most parts of the country.
As per a price notification issued by state-owned oil companies, the price of ATF was slashed by Rs 9,990 per kilolitre (14.7 percent), to Rs 58,060.97 per kilolitre. This marks the largest single price cut ever for the fuel in India. Jet fuel prices were reduced earlier as well on December 1, 2018 by Rs 8,327.83 per kilolitre (10.9 percent).
For comparison, a litre of ATF will now cost Rs 58.06 in Delhi as opposed to the Rs 68.65 and Rs 62.66 charged for petrol and diesel, respectively. Similarly in Mumbai, petrol costs Rs 74.30 per litre and diesel costs Rs 65.56 per litre, which is significantly higher than the Rs 58.01 per litre being charged for ATF in the city.
The two consecutive price cuts have brought down ATF rates to its lowest point in a year, providing relief to cash-strapped airlines. ATF rates are revised on the first of every month by state-owned fuel retailers. The rate is based on average international oil rate and the Rupee-US Dollar exchange rate in the preceding month.
(Petrol & diesel prices are as on January 2, 2019)
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