Central Government Slashes Jet Fuel Prices by Rs.1,221 per kl ahead of Union Budget

On February 1, the Central government reduced the prices of jet fuel or ATF by Rs 1,221 per kl in Delhi, just before the Interim Budget. This is the fourth consecutive month in which jet fuel prices have been reduced. After the latest revision, domestic airlines in Delhi have to pay Rs 1,00,772.17 per kl for ATF, while airlines in Kolkata, Mumbai, and Chennai have to pay Rs 1,09,797.33, Rs 94,246.00 and Rs 1,04,840.19 per kl, respectively.

These new prices are effective from February 1. The reduction in the price of jet fuel will provide some relief to airlines that are already facing financial difficulties, as jet fuel accounts for 40% of an airline's operating costs. On the first day of every month, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) adjust the prices of cooking gas and ATF based on the average international price in the previous month.