ATF prices for foreign airlines rise 5 pc for 2nd month, stays unchanged for domestic carriers
Aviation turbine fuel (ATF) prices for foreign carriers were raised by around 5 per cent on Friday -- marking the second consecutive monthly increase, even as domestic airlines were shielded from any revision.
State-run oil marketing companies, including Indian Oil Corporation, revised the rates in line with elevated global energy prices.
The hike applies only to international operations and foreign carriers, while ATF prices for domestic airlines remain unchanged.
In Delhi, which serves as the benchmark for ATF pricing in India, fuel for international airlines increased by $76.55 per kilolitre, or 5.33 per cent, taking the price to $1,511.86 per kl.
This follows a previous revision on April 1, when ATF prices for domestic carriers were sharply raised by 25 per cent to Rs 1,04,927.18 per kl.
ATF prices in India have been deregulated for over two decades and are linked to international benchmarks under an agreed pricing mechanism between airlines and oil companies. However, industry sources indicated that authorities are currently adopting a calibrated approach to pricing amid volatility in global energy markets.
According to sources, rising geopolitical tensions, particularly linked to the Iran conflict, have pushed up global fuel prices. Instead of passing on the entire increase immediately, oil firms and the government are staggering the impact. As a result, international carriers are being charged market-linked rates, while domestic airlines continue to benefit from moderated pricing to cushion cost pressures.
Fuel remains one of the largest cost components for airlines, and any increase in ATF prices has a direct bearing on operating expenses. The latest revision is expected to raise costs for international operators flying to and from India.
Oil marketing companies revise ATF prices at the start of every month based on global trends. With the latest hike, international carriers have now seen fuel costs rise for the second straight month, while domestic airlines continue to operate under relatively stable pricing conditions.
