ATF prices have been reduced by around Rs 5 per litre, marking the first cut after recent increases.
The revision follows a decline in international crude oil prices as concerns over potential supply disruptions have eased in recent weeks.
Lower jet fuel prices are expected to ease operating cost pressures for airlines.
ATF Prices Cut By Rs 5 Per Litre As Global Crude Oil Prices Ease
The first reduction in aviation turbine fuel prices after weeks of increases linked to tensions in West Asia offers some relief to airlines as global crude prices soften.
Summary
Airlines will pay less for aviation turbine fuel (ATF) from Wednesday after state-owned oil marketing companies reduced jet fuel prices by around Rs 5 per litre, marking the first cut since conflict in West Asia drove up global crude oil prices and pushed fuel costs higher.
The revision follows a cooling in international crude oil markets after weeks of volatility linked to concerns over supply disruptions. For airlines, the reduction offers some relief after weeks of elevated fuel costs, with aviation turbine fuel remaining one of their largest operating expenses.
Concerns over the security of oil supplies intensified after exchanges of missile and drone attacks involving Israel, Iran and the United States disrupted shipping through the Strait of Hormuz, a key route for global oil and gas exports.
While the latest revision lowers fuel costs, ATF continues to account for around 35 to 40 per cent of an airline's operating expenses, making movements in its price a significant factor in airline profitability and, at times, ticket pricing.
In India, ATF prices are revised twice each month by state-owned oil marketing companies. The revisions are based on international benchmark fuel prices and the rupee-dollar exchange rate, causing domestic jet fuel prices to move in line with changes in global oil markets.
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