Oil Marketing Companies have increased the prices of aircraft fuel (ATF) since Monday. This could add to the prevailing difficulties of airlines facing a financial crisis because of the two-month lockdown.
According to Indian Oil (IOL), the country’s largest oil marketing company, the price of aircraft fuel has been increased by Rs 12,126.75 to Rs 33,575.37 per kiloliter in the national capital from June 01.
Before this, from May 16 to May 31, it was priced at Rs 21,448.62 per kiloliter. Thus there has been a vast increase of 56.54 percent.
Aircraft total consumption of Fuel
About 40% of the total expenditure of aviation companies is spent on fuel, 35-40% of the total expenditure of airline companies is spent on fuel. So far airlines are facing a cash crunch due to the complete ban on domestic passenger flights for two months. In such a situation, their problems may inflate with the increase in fuel prices.
Aircraft fuel price increased by 57.80 percent in Mumbai
Since Monday, the price of aircraft fuel in Kolkata has increased by 45.68 percent to Rs 38,543.48, in Mumbai by 57.80 percent to Rs 33,070.56 and in Chennai by 56.54 percent to Rs 34,569.30 per kiloliters. Oil marketing companies review aircraft fuel prices every fortnight.
Regularly Oil marketing companies are reviewing aircraft fuel prices with a hope of some relief.
Aircraft fuel price in four major metros of the country (in rupees per kiloliter)