Record Surge in Jet Fuel Prices Amid Global Oil Crisis

Significant Increase in Aviation Fuel Costs

New Delhi, Apr 1: On Wednesday, the price of aviation turbine fuel (ATF) skyrocketed to an unprecedented Rs 2.07 lakh per kilolitre, more than doubling from previous rates. This surge in prices is attributed to the escalating conflict in West Asia, which has also led to a hike in commercial LPG rates by Rs 195.50 per cylinder.

The ATF price in Delhi saw an increase of Rs 110,703.08 per kilolitre, marking a staggering rise of 114.5%, bringing the total to Rs 207,341.22 per kl. This is the first instance where ATF prices have surpassed the Rs 2 lakh per kl threshold. The previous record was set in 2022 when prices reached Rs 1.1 lakh per kl following the spike in oil prices due to the Russian invasion of Ukraine.

This marks the second consecutive month of price hikes, with a 5.7% increase (Rs 5,244.75 per kl) occurring on March 1.

The escalating fuel costs are expected to put additional pressure on airlines, which are already facing increased fuel consumption due to longer flight routes necessitated by airspace closures resulting from the ongoing conflict.

Fuel expenses account for approximately 40% of an airline's operational costs.

In addition, the cost of commercial LPG, utilized by restaurants and hotels, has risen by Rs 195.50 for a 19-kg cylinder, bringing the total to Rs 2,078.50 in Delhi. The last adjustment for commercial LPG occurred on March 1, when prices increased by Rs 114.5 per 19-kg cylinder. Meanwhile, domestic cooking gas LPG prices, which were last raised by Rs 60 per 14.2-kg cylinder on March 7, remain stable at Rs 913 per 14.2-kg cylinder in Delhi.

State-owned entities such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum adjust ATF and LPG prices on the first day of each month, reflecting international market trends and currency exchange rates.

Global oil prices have surged nearly 50% since the onset of the West Asia conflict, disrupting energy supply chains.

Currently, petrol and diesel prices remain unchanged after a Rs 2 per-litre reduction in March of the previous year; petrol is priced at Rs 94.72 per litre in Delhi, while diesel costs Rs 87.62.