High crude oil prices led India's OMCs to hike ATF price
High crude oil prices led India's OMCs to hike ATF price

NEW DELHI: On Friday, India's OMCs raised the price of aviation turbine fuel (ATF) due to rising crude oil prices. As a result, the price of jet fuel in the national capital was raised to Rs 1,12,924.83 per kilolitre (kl) from Rs 1,10,666.29 per kl.

The price was increased to Rs 1,17,353.71, Rs 1,11,690.61, and Rs 1,16,583.71 per kiloliter in the other metro cities of Kolkata, Mumbai, and Chennai, respectively. "ATF costs have risen by over 50% since the beginning of the year, with the primary cause being the rise in crude prices caused by Russia-Ukraine tensions," said Bhanu Patni, Senior Analyst at India Ratings and Research.

"Due to the growth in global demand, jet fuel spreads have also increased." The increase is expected to have a significant impact on air fares as well as airlines' already precarious financial positions. "Flight prices have doubled on several popular routes in the last few weeks as ATF becomes more expensive," said Aloke Bajpai, ixigo's Group CEO and Co-Founder.

"If travellers want to acquire the greatest discounts on their forthcoming excursions, they must book ahead of time. The sector is hoping that the robust demand for summer tourism will help offset fuel costs." In India, oil marketing companies (OMCs) modify jet fuel rates every two weeks.

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