Jet fuel price cut, effective today; can flight tickets be cheaper ahead of holidays?

Jet fuel price: Oil marketing companies have reduced aviation turbine fuel (ATF) prices — or jet fuel rates — with effect from April 1, 2023. The price of jet fuel in New Delhi is slashed by Rs 9,400.7 per kilolitre. 

After the latest revision, airlines will have to pay Rs 98,349.59 per kilolitre for jet fuel in New Delhi, instead of the earlier Rs 1,07,750.27 per kilolitre, according to price notification by Indian Oil Corporation (IOC).

Analysts say the reduction in ATF rates may lead to reduced airfares.

Here are the new jet fuel rates in the three other metros: 

Mumbai: Rs 91,953.85 per kl

Chennai: Rs 1,02,491.87 per kl 

Kolkata: Rs 1,05,228.98 per kl 

This is a second straight cut in ATF rates within a month. In March, the price of jet fuel was reduced by four per cent amid softening crude oil rates. In February, the jet fuel price was raised by four per cent. 

Here are answers to some of the most frequently asked questions on ATF rates:

When are Jet fuel prices revised?

ATF prices are reviewed on a monthly basis and any revisions effected from the first day of the month. 

Why are jet fuel prices revised?

Domestic jet fuel prices are revised from time to time to align them basis changes in the rates of international crude oil and the rupee-dollar foreign exchange. 

Why do jet fuel rates vary from city to city?

The ATF rate varies in different parts of the country on account of varying local taxes. 

Petrol & diesel rates

Meanwhile, OMCs kept the rates of petrol and diesel unchanged on April 1. The prices of the fuels have remained steady for nearly 10 months.

Check out the prices of petrol and diesel in New Delhi and Mumbai: 

Mumbai: Petrol at Rs 106.31 per litre and diesel at Rs 94.27 per litre 

Delhi: Petrol at Rs 96.72 per litre and diesel at Rs 89.62 per litre

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