Jet fuel prices up by steep 6.5%; petrol, diesel unchanged for 2nd day

Jet fuel prices on Monday were hiked by a steep 6.5 per cent on the back of a rally in international oil prices.

Aviation turbine fuel or ATF price was hiked by Rs 3,663 per kilolitre, or 6.5 per cent, to Rs 59,400.91 per kl in the national capital, according to a price notification of state-owned fuel retailers.

This is the third increase in jet fuel prices since February. Rates were increased by 3.6 per cent on February 16, and by Rs 3,246.75 per kl on February 1.

The increase in rates will add to the margin woes of airlines who continue to operate flights at less than capacity, amid pandemic-driven travel restrictions.

Brent crude oil prices on Monday rose to USD 65.49 per barrel - the highest in more than a year - on optimism in the global economy and on hopes for improving oil demand as vaccines are being rolled out.

Meanwhile, petrol and diesel prices were unchanged for the second day in a row after hitting an all-time high.

Petrol is priced at Rs 91.17 per litre in Delhi and at Rs 97.57 in Mumbai. Diesel comes for Rs 81.47 a litre in the national capital and for Rs 88.60 in Mumbai.

The rates of regular petrol had last month crossed Rs 100-mark at a few places in Rajasthan and Madhya Pradesh, which levy the highest VAT on the fuel in the country.

Price of branded/premium or additive mixed petrol in Mumbai crossed Rs 100 mark on Saturday. It comes for Rs 100.35 a litre now.

Higher taxes are levied on branded or premium grade petrol and diesel.

In Delhi, the same grade fuel costs Rs 94 a litre.

While petrol and diesel prices are revised on a daily basis, ATF rates are revised on the 1st and 16th of every month.

Petrol price has gone up by Rs 4.87 per litre in the last two months. Diesel rates have increased by Rs 4.99 during the same period.

Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel.

The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 a litre on diesel.