Aviation Turbine Fuel Prices Dip 1.4% After Two Months of Hikes
Aviation turbine fuel (ATF) prices have been reduced by 1.4% or Rs 1,308.41 per kilolitre, with the price in Delhi now at Rs 90,713.52 per kl. This decrease follows two months of price increases totaling 10.5%. The price cut varies across major cities, with Mumbai having the lowest rates and Chennai the highest. This reduction is expected to benefit commercial airlines, as fuel costs make up about 40% of their operating expenses. The price cut aligns with falling international oil rates influenced by geopolitical tensions and trade wars.
*this image is generated using AI for illustrative purposes only.
In a welcome relief for the aviation industry, aviation turbine fuel (ATF) prices have been reduced by 1.4% or Rs 1,308.41 per kilolitre, bringing the price down to Rs 90,713.52 per kl in Delhi. This reduction comes after two consecutive months of price increases that saw a cumulative hike of 10.5% in July and August.
Price Variations Across Major Cities
The price cut has been implemented across major cities, with variations in rates:
| City | ATF Price (per kilolitre) |
|---|---|
| Mumbai | Rs 84,832.83 |
| Delhi | Rs 90,713.52 |
| Kolkata | Rs 93,886.18 |
| Chennai | Rs 94,151.96 |
Mumbai currently enjoys the lowest ATF rates among these cities, while Chennai faces the highest prices.
Impact on Airlines
This price reduction is expected to bring some relief to commercial airlines, for whom fuel costs constitute approximately 40% of their operating expenses. The decrease aligns with falling international oil rates, which have been influenced by ongoing geopolitical tensions and trade wars.
Recent Price Fluctuations
The current price cut follows a period of significant fluctuations in ATF prices:
- April-June: Three consecutive monthly reductions totaling Rs 12,239.17 per kl in cuts.
- July-August: Two months of price hikes, wiping out nearly three-quarters of the gains from the previous reductions.
- Current: A 1.4% decrease, offering some respite to the aviation sector.
While this reduction is a positive development for airlines, it's worth noting that ATF prices remain volatile, subject to global oil market dynamics and geopolitical factors. The aviation industry will likely continue to monitor these fluctuations closely, as they significantly impact operational costs and, consequently, airfare pricing strategies.
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