Aviation fuel now costs less than a third of the price of gasoline

ATF, which is used as fuel in airplanes, now costs less than a third of the price of gasoline used in automobiles and two-wheelers. This is the steepest cut and the sixth reduction in ATF prices since February. Since February, jet fuel prices have dropped by almost two-thirds. The price of the ATF in Delhi before the beginning of the reduction cycle in February was ₹64,323.76 per kl and now it costs ₹22,544.75 per kl. A similar reduction has been made in other metropolitan cities as well.

In Delhi, a liter of gasoline is priced at ₹69.59 per liter and diesel at ₹62.29 per liter today. In Mumbai, gasoline is sold to ₹76.31 per liter and diesel at ₹66.21 per liter. In Chennai, a liter of gasoline will cost ₹72.28 per liter, while diesel is now priced at ₹65.71 per liter.

However, fuel rates have increased in some cities such as Bengaluru, Mumbai and Kolkata due to an increase in VAT by the respective state governments. Market price or unsubsidized kerosene is now much cheaper than gasoline and diesel after rates dropped 13.3% to ₹39,678.47 per kl ( ₹39.67 per liter), according to a notification issued by the state MACs.

Although the oil UPMs have regularly reviewed ATF prices, since March 16 they have kept gasoline and diesel prices on hold apparently due to extreme volatility in international oil markets.

Gasoline and diesel prices froze shortly after the government increased excise duties on the two fuels by ₹3 per liter each to eliminate the gains derived from the fall in international rates.

Oil companies, instead of passing the increase in excise taxes to consumers, decided to adjust them against the required reduction due to falling international oil prices. They used the same tool and did not pass the Re 1 per liter increase required to switch to ultra clean BS-VI grade fuel as of April 1.