In a significant relief to the overseas carriers, the Aviation Turbine Fuel (ATF) prices for international airlines were cut by 27 per cent in monthly revision on Monday. However, domestic airline rates remained unchanged for a second consecutive month.
The reduction lowers jet fuel prices for international carriers by more than $400 per kilolitre to about $1,100 per kl. Domestic carriers will continue to pay ₹104,927.18 per kilolitre for ATF.
Earlier on May 1, rates for international carriers rose by $76.55, or 5.33 per cent, to $1,511.86 per kl after increasing more than two-fold in April to $1,435.31 amid a surge in international energy prices.
Earlier, Indian airlines asked the government for urgent help due to rising Aviation Turbine Fuel (ATF) prices, stating the industry is under extreme stress and on the verge of closing down or stopping operations.
The Federation of Indian Airlines (FIA), comprising Air India, IndiGo & SpiceJet, wrote to the Ministry of Civil Aviation (MoCA) requesting urgent support for ATF pricing to continue airline operations amid the West Asia crisis.
In its letter to the government, FIA seeks temporary deferment of Excise duty on ATF, reduction of VAT in key states, and reinstatement of the crack band in line with the pre-agreed formula.
The Centre has also revised the prices of the commercial cylinders; the price of a 19-kg commercial LPG cylinder in Delhi increased by Rs 42, bringing the retail rate to Rs 3,113.50.
In Kolkata, the increase is Rs 53.50, pushing the price to Rs 3,255.50.
Further, prices of 5-kg Free Trade LPG (FTL) cylinders also rose by Rs 11. In Delhi, these cylinders will now cost Rs 821.50. Domestic LPG cylinder prices, however, remain unchanged.