Aviation turbine fuel rates in Delhi were raised by Rs 1,297, or 3.2 per cent, to Rs 41,489 per kilolitre effective midnight tonight, said an official of Indian Oil Corporation, the nation's largest oil marketing firm.
State-owned oil firms on Tuesday hiked jet fuel by 5.5 per cent in sync with rise in global rates.
Passengers travelling by the nation's airliners could now have to pay increased fares as the country's oil majors have decided to hike aviation turbine fuel (ATF) prices by 8 per cent to a maximum of Rs 2,525.43 per kilolitre.
The economy is gaining traction with gradual pick up in manufacturing activity and moderation in contraction of services, spurred by comfortable liquidity conditions, an RBI article on Tuesday said. Observing that the retreat of the second wave of coronavirus pandemic has been slow, the RBI in an article on the 'State of Economy' said, the aggregate demand conditions are buoyed by the release of pent-up demand post unlock, while the supply situation is improving with the monsoon catching up to its normal levels and sowing activity gaining pace. "Reaffirming the traction that the economy is gaining, the manufacturing activity is gradually turning around, while contraction in services has moderated.
The state-run oil firms will raise jet fuel price by Rs 1,338 per kl effective midnight tonight, an Indian Oil official said on Thursday.
The demand, which had fallen by as much as 70 per cent, has since recovered after lockdown restrictions were eased beginning early May.
The minister said airlines must reciprocate the government's gesture to help the aviation industry, which has been been going through rough weather this year. State-run oil companies on Monday slashed jet fuel prices by over 11 per cent. ATF in Delhi was cut by Rs 4,208.37 to Rs 32,691.28 per kilolitre.
Aviation companies are set to get a major relief from high aviation turbine fuel prices. Following a steep decline in crude oil prices, oil marketing companies are looking to cut ATF prices by 5-6 per cent, or Rs 2,000-2,500 a kl across various cities beginning Thursday, said industry sources.
As a result of crude oil prices falling to a four-year low of around $40 a barrel last fortnight, public sector oil companies today cut aviation turbine fuel (ATF) prices by 11 per cent. The rates will be effective this fortnight. The current rates were set on December 1. This is the seventh consecutive cut in ATF prices since September.
The source said logistics became a big issue for almost all the participating countries.
Air India has decided to reduce fuel surcharge on all domestic flights by Rs 400 with effect from Tuesday.
The airline industry remained largely undecided on the exact quantum of increase in fares following the hike in ATF prices. Industry sources, however, said the prices might increase by Rs 150 for short haul routes and Rs 300 for long haul routes.
Rising aviation turbine fuel cost, poor infrastructure, regulatory controls and reluctance of consumers to take to air travel are some of the issues hurting aviation industry in the country, Deccan Aviation executive chairman Captain G R Gopinath said.
Domestic airlines may soon be able to hedge their risk of jet fuel prices. The government is considering a proposal to allow Indian carriers to hedge the price risk of aviation turbine fuel purchased from oil marketing companies in the country.
SpiceJet COO says ATF price cut is need of the hour.
Rates have been on the upswing since October, 2016.
While the national carrier Air India has decided against a hike, private carriers like Jet Airways and SpiceJet have concrete plans to increase their fuel surcharge on domestic flights.
ATF price in Delhi has been raised to Rs 53,309.30 per kilolitre from Rs 47,048.86 per kilolitre, an Indian Oil Corporation, the nation's largest fuel retailer, said. In Mumbai, the price rose by Rs 6,536.35 a kilolitre to Rs 55,191.58 per kilolitre.
The price of non-subsidised cooking gas (LPG) was on cut by Rs 21 per cylinder and that of jet fuel (ATF) by a steep 3 per cent on the back of falling international oil rates.
The civil aviation ministry is hopeful of further reduction in the price of aviation turbine fuel this year.
State oil companies have raised aviation turbine fuel (or jet fuel) prices by 2.86 per cent in line with rising international oil prices.
West Bengal government has 1.2 per cent stake in BAPL.
Public sector oil firms on Tuesday slashed aviation turbine fuel prices by 7.9 per cent in line with fall in international oil prices.
The three state-owned oil companies have decided to defer snapping fuel supplies to Air India. The airline owes the three firms over Rs 5,000 crore in past fuel bills.
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Such direct import was formally allowed in February 2012 but the aviation companies lack the infrastructure to do so.
Reliance has a 24 per cent conversion rate of 'oil-to-chemicals' at present and may be targeting 70 per cent conversion.
Lower taxes on ATF on international routes certainly help in making operations more viable.
A subsidised 14.2-kg cylinder will now cost Rs 425.06 in Delhi as against Rs 423.09 previously, according to State-owned oil firms
Congress said ATF prices have been reduced by 31% while petrol only 16%.
India on Wednesday successfully test fired the 290-km range BrahMos supersonic cruise missile from the Navy's latest guided missile frigate INS Tarkash off the coast of Goa.
Currently open access to ATF facilities exists at Delhi, Hyderabad and Bangalore airports, sources said on the sidelines of the Petrotech 2012 Conference in New Delhi.
In a bid to slash costs, Air India has hedged 10,000 barrels of jet fuel for its aircraft this month, four weeks after its Board gave a nod to the move.
Market leader IndiGo on Friday followed its rivals and raised fares by 25 per cent to offset the impact of rupee fall and spike in international crude prices.
ATF price in Delhi has been raised by Rs 272.77 to Rs 42,452.02 per kilolitre, an Indian Oil official said.
Pakistan was ready to buy petroleum products from India if these were offered at "right prices", the country's minister of Petroleum and Natural Resources Asim Hussain said.
Aviation turbine fuel to now cost more.
'The recent price hike would only be beneficial if the airlines continue to operate at 80 per cent airline capacity. An increase towards 90 or 100 per cent airline capacity would again add pressure to the fares as demand remains muted. Also, we are in the fourth quarter of the fiscal year which is a seasonally weaker quarter,' says an analyst.
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