International Airlines Benefit from 27% ATF Price Cut Amid Stable Domestic Rates
ATF prices for international airlines slashed 27%; domestic rates unchanged
The Economic Times
Image: The Economic Times
Aviation Turbine Fuel (ATF) prices for international airlines were reduced by 27%, dropping to about $1,100 per kilolitre, while domestic rates remain unchanged at ₹104,927.18 per kilolitre. This decision comes as global fuel prices ease, providing relief to international carriers amidst ongoing supply challenges due to geopolitical tensions.
- 01International ATF prices decreased by over $400 per kilolitre, marking a significant reduction.
- 02Domestic airlines continue to pay ₹104,927.18 per kilolitre for ATF, unchanged since April 1.
- 03State-owned oil companies have absorbed higher international costs to maintain domestic fuel prices.
- 04Commercial LPG prices increased by ₹42 per 19-kg cylinder, reaching a record high of ₹3,113.50 in Delhi.
- 05The ongoing conflict in West Asia is affecting global jet fuel supply, contributing to market volatility.
Advertisement
In-Article Ad
In a recent monthly revision, Aviation Turbine Fuel (ATF) prices for international airlines were slashed by 27%, bringing the cost down to approximately $1,100 per kilolitre. This significant reduction follows a rise in international fuel benchmarks, providing much-needed relief to overseas carriers. In contrast, domestic airlines will continue to pay ₹104,927.18 per kilolitre, a rate that has remained unchanged since early April. State-owned oil companies, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), have opted to absorb higher international costs to avoid passing them on to domestic consumers. Additionally, commercial LPG prices have surged, with a ₹42 increase per 19-kg cylinder, now costing ₹3,113.50 in Delhi. This price adjustment reflects ongoing challenges in the global fuel supply chain, exacerbated by geopolitical tensions in West Asia.
Advertisement
In-Article Ad
The reduction in ATF prices for international airlines may lead to lower operational costs, potentially benefiting air travel prices. However, domestic airlines continue to face financial challenges due to unchanged fuel costs.
Advertisement
In-Article Ad
Reader Poll
How do you think the ATF price reduction will affect air travel costs?
Connecting to poll...
More about Indian Oil Corporation
Read the original article
Visit the source for the complete story.