New Delhi: Aviation Turbine Fuel (ATF) prices have surged to record highs on Wednesday after oil marketing companies (OMCs) increased rates by 5.2 percent in line with the flare in global crude oil prices. This is the fourth rise in prices of jet fuel prices in less than two months primarily due to a rise in global crude oil prices. However, even as ATF prices have been on the upswing, petrol and diesel prices have remained unchanged for a record 103rd day in a row as states like Uttar Pradesh (UP) and Punjab go into polls.
According to a notification issued by state-owned fuel retailers, ATF price was hiked by Rs 4,481.63 per kilolitre or 5.2 percent to Rs 90,519.79 per kl in the national capital. This is the highest-ever price for ATF in history. It is even higher than the previous record high of Rs 71,028.26 per kl reached in August 2008 when international crude oil prices touched USD 147 per barrel.
The hike in ATF prices will put pressure on the balance sheets of airlines which are already in the red due to operations getting curtailed due to COVID-19 related restrictions. Over the course of the last two months, ATF prices have been hiked by Rs 2,039.63 per kl or 2.75 percent to Rs 76,062.04 per kl on January 1 and then again by Rs 3,232.87 per kl (4.25 per cent) to Rs 79,294.91 per kl on January 16. They went up by Rs 6,743.25 per kl or 8.5 percent to Rs 86,038.16 on February 1.
The hike announced in the prices during this period is Rs 16,497.38 per kl.
The price increases follow two rounds of price cuts in December that came on the back of a drop in international oil prices during the second half of November and mid-December. However, global crude oil prices have climbed up since then. Brent crude was trading at USD 95.93 per barrel on Wednesday.