Airlines get relief as oil companies reduce aviation turbine fuel prices by 2%

On Saturday, Aviation turbine fuel (ATF) prices were cut by Rs 3,084.94 per kilolitre, or 2.2 per cent, to Rs 138,147.93 per kl, a price notification of state-run fuel retailers showed.

This came as Brent crude oil prices continue to correct on increasing pessimism about slowing growth.

International oil prices have softened since on fears of recession in major economies. Oil prices are at pre-Ukraine war levels.

ATF prices are revised on the 1st and 16th of every month based on rates of benchmark international oil rates in the previous fortnight.

In Delhi, ATF price has been reduced to Rs 138,147.95/kl and in Mumbai, the rate has been slashed to Rs 137,095.74/kl.

This is only the second reduction in jet fuel rates this year. Prices had peaked to Rs 141,232.87 per kl ( Rs 141.23 per litre) in June.

The prices also differ from state to state, depending on the incidence of local taxation.

In a related development, Indian airline executives have formed a committee to meet with public sector OMCs to discuss the issue of the rising ATF prices.

The committee of airlines and OMCs – SpiceJet, GoFirst and Indigo – leading it along with representation from Vistara and other airlines and public sector OMCs i.e. Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation.