State-run oil marketing companies (OMCs) are continuing to incur under-recoveries of around ₹30 per litre on aviation turbine fuel (ATF) sold to domestic airlines after keeping jet fuel prices unchanged for a second straight month. Prices for international carriers, however, were cut by a steep 27% in the monthly revision effective June 1.
“There is under-recovery of around ₹30 per litre on domestic jet fuel, but this under-recovery is variable based on international prices,” Sujata Sharma, joint secretary at the petroleum ministry, said on Monday.
Domestic airlines will continue to pay ₹104,927.18 per kilolitre for ATF, the rate applicable since April 1. The price was left unchanged in May and June despite elevated international benchmark prices.
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In contrast, ATF prices for international airlines were reduced by more than $400 per kilolitre to around $1,100.
International ATF prices had risen by $76.55 per kl, or 5.33%, to $1,511.86 per kl on May 1, after more than doubling to $1,435.31 in April amid a surge in global energy prices triggered by the West Asia war.
Bridging the Gap
Domestic airlines had repeatedly sought relief from rising fuel costs and requested parity between domestic and international jet fuel prices. Public sector OMCs subsequently kept domestic ATF prices unchanged despite higher international benchmarks.
“The aviation turbine fuel prices are determined based on international benchmark rates,” Sharma said.
The reduction for international carriers has brought ATF prices for overseas flights closer to domestic levels.
Beyond Aviation
The pricing pressure extends beyond jet fuel. OMCs are incurring under-recoveries of around ₹650 on every domestic LPG cylinder sold, according to the petroleum ministry. “There is still under-recovery of ₹650 a cylinder on domestic LPG,” Sharma said.
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At the same time, OMCs increased the price of the 19-kg commercial LPG cylinder by ₹42, taking the retail price in Delhi to ₹3,113.50.
The latest revision follows a steep ₹993-per-cylinder increase implemented on May 1, taking commercial LPG prices to record levels.
The price of 5-kg free trade LPG cylinders was also raised by ₹11, taking the retail price in Delhi to ₹821.50.
Household consumers have been spared any increase, with the price of the 14.2-kg domestic LPG cylinder remaining unchanged at ₹913 since March.
There was also no change in petrol and diesel prices after increases of around ₹7.50 per litre last month. Petrol currently costs ₹102.12 per litre in Delhi, while diesel is priced at ₹95.20 per litre.
According to the petroleum ministry, under-recoveries on petrol, diesel and domestic LPG had reached around ₹650 crore per day in May as state-run retailers moderated retail fuel price increases despite elevated international energy prices.
TOPICSOil Marketing StocksThis article was first uploaded on June one, twenty twenty-six, at twenty-two minutes past ten in the night. © The Indian Express (P) Ltd