Trade News
Inbound/ Domestic News
Outbound News
 
Home Top Stories Details

TOP STORIES

Thursday, 17 September, 2020, 10 : 45 AM [IST]

ATF prices slashed for second time this month

In a respite for cash-strapped Indian airlines, the price of aviation turbine fuel (ATF) was slashed on Wednesday for the second time in September, as the global crude prices fell during the past few days following price cuts from Gulf producers as a result of slack demand due to the ongoing covid-19 pandemic, reports Rhik Kundu in Mint.

Indian Oil Corporation Limited (IOC) revised its ATF, or Jet fuel, prices on September 16, which stood at INR 39,492.53 per kilolitre in New Delhi, down from September 1 price of INR 42,447.91 per kilolitre.

ATF rates are revised on the first and sixteenth day of each month to bring them at par with international crude oil prices and forex rates.

ATF prices had been raised in June, followed by price hikes in July and August before they were slashed in September.

Any spike in international crude oil prices impacts Indian aviation against the backdrop of factors such as the Organization of the Petroleum Exporting Countries and Russia cutting supplies, the US imposing sanctions on Venezuelan state-owned oil company PetrĂ³leos de Venezuela SA, and US President Donald Trump pulling the country out of a historic 2015 accord with energy-rich Iran.

Aviation turbine fuel accounts for about 35-40% of airlines' total costs for operation. At a time when domestic airlines are struggling to keep their costs down, the fall in ATF prices comes as a respite for airlines' finances.

"The price of ATF rose substantially between June and August, which added to costs even though passenger demand remained somewhat subdued due to the ongoing pandemic," said a senior airline official, who didn't want to be named.

"The fall in ATF prices will aid airlines in their endeavour to cover their variable costs," the senior airline official added. (Source: Mint)

 
Post Your commentsPOST YOUR COMMENT
Comments
* Name :      
* Email :    
  Website :  
     
Receive the best of Travel content in your mailbox.
Enter your e-mail ID for our
Weekly e-Newsletter
   
© Copyright 2015 Saffron Synergies Pvt Ltd