Image Source : AP/FILE International oil prices have softened since on fears of recession in major economies. Oil prices are at pre-Ukraine war levels. Jet fuel prices were reduced by 2.2% on Saturday after a fall in international oil prices. Aviation turbine fuel (ATF) prices were cut by Rs 3,084.94 per kilolitre, or 2.2 per cent, to Rs 138,147.93 per kl, a price notification of state-run fuel retailers showed. This is only the second reduction in rates this year. Prices had peaked to Rs 141,232.87 per kl (Rs 141.23 per litre) last month. ATF prices are revised on the 1st and 16th of every month based on rates of benchmark international oil rates in the previous fortnight. There was no change in rates on July 1. Prior to that, prices were hiked by the steepest ever 16 per cent to catapult rates to an all-time. International oil prices have softened since on fears of recession in major economies. Oil prices are at pre-Ukraine war levels. On June 16, the price of ATF — the fuel that helps aeroplanes fly — was increased by Rs19,757.13 per kl. That followed a marginal 1.3 per cent (Rs 1,563.97 per kl) cut in rate on June 1. But for the one-off decrease on June 1, ATF prices have been on the rise throughout 2022. In all, rates have been increased 11 times since the start of the year. This has led to rates almost doubling in six months. Prior to the cut on Saturday, prices had gone up by 91 per cent (Rs 67,210.46 per kl) since January 1. With jet fuel making up almost 40 per cent of the operating cost of an airline, the increase in prices had resulted in a rise in the cost of flying. Now there has been a marginal relief. Meanwhile, petrol and diesel prices remained unchanged at Rs 96.72 per litre and Rs 89.62 a litre, respectively. An excise duty cut by the government had helped reduce the price of petrol by Rs 8.69 a litre and diesel by Rs 7.05 per litre on May 22. But for that, the base price has remained unchanged since April 6. Before that, prices had risen by a record Rs 10 per litre each. The retail prices of petrol, diesel and domestic cooking gas are way below the cost. Petrol and diesel rates are revised daily, based on equivalent rates in the international market. (agencies inputs) Latest Business News
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