New Delhi, 01 June (H.S.):

Public-sector oil and gas marketing companies on Monday announced a steep 27 per cent reduction in Aviation Turbine Fuel (ATF) prices for airlines operating international flights. However, ATF rates for domestic airlines have remained unchanged for the second consecutive month.

Following the reduction, the price of aviation fuel for international carriers has fallen by more than $400 per kilolitre to around $1,100 per kilolitre. Earlier, amid rising global energy prices, ATF rates for international airlines had more than doubled, reaching $1,435.31 per kilolitre. On May 1, the price was further increased by $76.55, or 5.33 per cent, to $1,511.86 per kilolitre.

Oil and gas marketing companies have not revised ATF prices for domestic airlines. The rate has remained unchanged at Rs.104,927.18 per kilolitre since April 1. No revision has been made since then. The adjustment forms part of the monthly price review undertaken by government-owned oil marketing companies.

The ongoing crisis in West Asia and disruptions around the Strait of Hormuz have affected global ATF supplies, placing sustained pressure on international supply chains.

Aviation fuel prices in India were deregulated more than two decades ago and have since been aligned with international pricing benchmarks.

Amid the sharp rise in energy prices triggered by the West Asia crisis, the government and public-sector oil marketing companies have adopted a balanced approach. Market-linked rates are being charged to foreign airlines, while prices for domestic carriers have been kept stable. As a result, Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited are expected to incur losses on domestic ATF sales.

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Hindusthan Samachar / Jun Sarkar