On Wednesday, jet fuel costs rocketed to new highs across the country after rates were raised by 5.2 percent in response to a jump in worldwide oil prices.
Following a jump in global oil prices, this is the fourth raise in jet fuel or Aviation Turbine Fuel (ATF) prices in less than two months, although petrol and diesel prices have remained steady for a record 103rd day, coinciding with electioneering in regions such as Uttar Pradesh and Punjab.
According to a price statement from state-owned gasoline dealers, the price of ATF was raised by Rs 4,481.63 per kilolitre, or 5.2 percent, to Rs 90,519.79 per kilolitre in the national capital.
This is the highest price at which ATF has ever traded. The tariff is higher than the previous peak of Rs 71,028.26 per kilo in August 2008, when international crude oil prices hit USD 147 per barrel. Brent crude oil was selling at USD 93.87 per barrel on Tuesday.
ATF prices have risen by Rs 16,497.38 per litre after four increases.
These rate hikes followed two rounds of price cuts in December, which reflected a decline in worldwide oil prices between the second part of November and the middle of December.
Following that, foreign rates have firmed, resulting in an increase in ATF prices.
ATF prices peaked in mid-November 2021 at Rs 80,835.04 per kl before being dropped by a total of Rs 6,812.25 per kl or 8.4% on December 1 and 15.
Every month on the 1st and 16th, jet fuel prices are adjusted based on the average price of the international benchmark for the previous fortnight.
Despite a dramatic swing in international oil prices, this is the case. Brent crude oil, the most widely used international benchmark, was trading at USD 82.74 per barrel on November 5, 2021, before falling to USD 68.87 per barrel on December 1.
Since then, prices have risen to near USD 94, much above the all-time high of US$86.40 reached on October 26, 2021, when gasoline and diesel prices reached an all-time high.
Petrol costs Rs 95.41 a litre in Delhi, while diesel costs Rs 86.67, according to data from state fuel retailers.
Petrol and fuel prices had reached an all-time high across the country prior to the excise duty reduction. While fuel prices have above Rs 100 per litre in most cities, diesel prices had surpassed that threshold in nearly half of the country.
After the Union government slashed excise duty on petrol by Rs 5 per litre and diesel by Rs 10 per litre on November 4, 2021, prices had fallen from an all-time high.
States have also reduced local sales taxes or VAT on the two fuels, with BJP-ruled states doing so on the same day and others doing so at different times. The base rates, aside from these two, have stayed unaltered.