This decrease reduces jet fuel costs for international carriers by over $400 per kilolitre, bringing the price to about $1,100 per kl, according to industry sources.
On May 1, rates for these airlines had increased by $76.55, or 5.33%, reaching $1,511.86 per kl after more than doubling in April to $1,435.31 due to rising international energy prices.
Domestic airlines will continue to pay ₹104,927.18 per kilolitre for ATF, a rate that has been in effect since April 1, when only a portion of the necessary increase was passed to the airlines. Prices have remained stable since.
Despite an increase in international rates, state-run fuel retailers maintained prices in May, absorbing the higher costs to shield passengers from the impact.
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Now, with international rates decreasing, they have transferred the reduction to overseas carriers while still incurring losses on domestic supplies.
In a separate update, oil marketing companies have raised commercial LPG prices by ₹42 per 19-kg cylinder, bringing the cost to a record high of ₹3,113.50 in Delhi, up from ₹3,071.50.
This latest increase follows a substantial ₹993 hike implemented on May 1, marking commercial LPG prices at their highest levels.
Prices for 5-kg free-trade LPG (FTL) cylinders also saw an increase of ₹11, bringing them to ₹821.50 per cylinder.
Household consumers were not subject to any increases, with the price of the 14.2-kg domestic LPG cylinder staying unchanged at ₹913 since early March, when rates rose by ₹60 per bottle.
The revisions form part of the routine monthly price review carried out by state-owned oil marketing companies.
Prices may differ from state to state based on local taxes like VAT.
Sources indicated that ATF for domestic carriers is still priced below cost.
No changes were made to petrol and diesel prices after an increase of about ₹7.50 per litre last month. Currently, petrol costs ₹102.12 per litre in Delhi, and diesel is priced at ₹95.20.
Around the world, airlines are experiencing disruptions due to tightening jet fuel supplies, a situation exacerbated by the ongoing conflict in West Asia. The Strait of Hormuz – crucial for global energy transport – remains largely closed as the conflict persists, further straining fuel availability and supply chains.
In India, jet fuel prices have been deregulated for more than twenty years, aligning with benchmark international rates as per an agreement with airlines.
However, the surge in global energy prices induced by the West Asia war led to unprecedented increases in ATF prices, prompting the government and state-owned oil firms to opt for a measured approach, according to industry sources.
While international airlines and carriers pay market rates, domestic airlines have seen moderated prices, they noted.
By keeping jet fuel prices stable for domestic airlines, state-owned IOC, Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) are likely to incur losses on these fuel sales.
They are also expected to face similar losses on petrol, diesel, and domestic LPG, amounting to about ₹650 crore daily in May, as reported by the oil ministry.
