International Airlines Face 5% ATF Price Hike Amid Global Oil Surge
ATF Prices Hiked By 5% for International Airlines; Domestic Rates Unchanged Amid Oil Cost Surge
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On May 1, 2023, aviation turbine fuel (ATF) prices for international airlines in India increased by approximately 5%, reaching $1,511.86 per kilolitre. In contrast, domestic ATF prices remained unchanged as state-owned oil companies opted to shield local carriers from global crude price volatility.
- 01ATF prices for international airlines increased by 5% to $1,511.86 per kilolitre.
- 02Domestic ATF prices were kept stable to protect local airlines and consumers.
- 03The price adjustments are part of a calibrated strategy amid rising global energy costs.
- 04Around 80% of petroleum products in India saw no price change.
- 05The increase follows a significant 25% hike in domestic ATF prices earlier in April.
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On May 1, 2023, aviation turbine fuel (ATF) prices for international airlines in India saw a 5% increase, bringing the price to $1,511.86 per kilolitre. This marks the second consecutive monthly rise as state-run oil companies adjust prices in response to surging global energy costs driven by geopolitical tensions in West Asia. In contrast, domestic ATF prices remained unchanged, with state-owned oil companies like Indian Oil Corporation absorbing the increased costs to protect local airlines and consumers. The decision reflects a broader strategy to balance global price alignment with domestic stability, as approximately 80% of petroleum products have seen no price change. This approach aims to minimize the impact on consumers while selectively adjusting prices for international and industrial segments, ensuring economic stability amid ongoing fluctuations in crude oil prices.
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The decision to maintain stable domestic ATF prices helps protect local airlines and consumers from the volatility of global oil prices, which could otherwise lead to increased air travel costs.
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