ATF consumption in Dec soars to 47-month high on back of domestic movements

December saw the highest consumption of aviation turbine fuel (ATF) since early 2020, primarily due to an increase in the number of domestic aircraft movements.

The total domestic consumption of ATF (or jet fuel) touched nearly 720,000 metric tonnes, shows data from the Petroleum Planning and Analysis Cell (PPAC). The last month with higher consumption was January 2020, when it had touched around 739,000 metric tonnes.

There was a marked decline in the period after the lockdown announced in March 2020 to control the Covid-19 pandemic. The total use had fallen to a low of 55.2 metric tonnes in April 2020. The recovery since then has been gradual.

Government data shows that domestic flights tend to dominate the use of ATF. Domestic aviation accounted for 74 per cent of consumption between April and November 2023. Around 24 per cent was for international aviation. The remaining 2 per cent was used by the military.

“The domestic footfall is back to be comparable with pre-Covid levels, however, international traffic footfall is lagging because of restricted entry in few countries,” according to the PPAC industry consumption report as of November.

The report said value-added tax on ATF had had an impact on consumption patterns domestically. Bihar, Tamil Nadu, Delhi, and West Bengal have higher tax rates of 25 per cent on jet fuel. This has led to higher consumption in the western region, the report said.

The number of domestic aircraft movements has also risen, shows data compiled by the Centre for Monitoring Indian Economy (CMIE). 

The number of domestic aircraft movements as of January 2020 was 2.17 million on a trailing 12-month basis. 

The use of a trailing number eliminates the effects of seasonality. There can be greater activity during the festival season, for example.

 The use of a trailing 12-month number includes a full year’s worth of data and eliminates such effects. The number of domestic aircraft movements rose to 2.24 million as of November 2023 on a trailing 12-month basis, shows the CMIE data.