Aviation Turbine Fuel Prices Cut By Rs 5,883 A Kilolitre

Oil marketing companies have announced a reduction in the prices of aviation turbine fuel, effective Oct. 1, 2024. The price cut amounts to Rs 5,883 per kiloliter, providing much-needed relief to domestic airlines amid rising operational costs.

Following the revision, the new ATF prices for domestic airlines in Delhi stands at Rs 87,597.22 per kilolitre, and Rs 81,866.13 a kilolitre in Mumbai.

For international operations, ATF prices are also set to decrease. In the national capital, a kilolitre of jet fuel will cost $795.27, while price in Mumbai will be $794.57 per kilolitre.

This price adjustment comes as a strategic move by OMCs to support the aviation sector, which has faced increasing pressure from fluctuating fuel costs. The reduction is expected to positively impact airline profitability, enabling carriers to potentially lower ticket prices or enhance services for passengers.

The price reduction will help ease the burden on airlines for whom fuel makes up almost 40% of operating costs.

Last month, the price of jet fuel was reduced by 4.6%, with a cut of Rs 4,495.5 per kiloliter, bringing the price down to Rs 93,480.22 per kiloliter in Delhi, as reported by state-owned fuel retailers.

This reduction in September followed two consecutive months of price increases. On Aug. 1, jet fuel prices were raised by 2% (or Rs 1,827.34 per kiloliter) and then by 1.2% (or Rs 1,179.37 per kiloliter). These hikes came after a significant decrease of 6.5% (or Rs 6,673.87 per kiloliter) that came into effect on June 1.