Prices for aviation fuel have been cut by 11.3 percent and now costs a whole Rs. 5/- less than diesel in Delhi.
Just last month, Aviation Turbine Fuel (ATF) saw a steep price cut lowering its per litre cost to less than that of petrol in Delhi. If that wasn’t enough, ATF has once again witnessed a price cut of 11.3 percent with prices now stooped below diesel in the country’s capital. While the price cut does seem great for our travel plans, our pockets still remain malnourished with no reduction in the prices for petrol and diesel as per the recent fortnightly revision.
The lower price of jet fuel does come as startling since ATF is more refined off the lot with a higher octane compared to petrol or diesel. Ideally, fuels with lesser octane value cost less as they go through a lower distillation process. This in turn should make diesel the most affordable fuel in the country. As per the current revision though, jet fuel now costs Rs. 46.51/- per litre while petrol is priced at Rs. 58.91/- per litre. The difference is a good Rs. 12.4/- per litre. With diesel selling at Rs. 51.52/- per litre, ATF is lower than the popular fuel by Rs. 5.01/- per litre.
One of the main reasons for the high cost of petrol and diesel has been the four consecutive excise duty hikes since November totalling a rise of Rs. 7.75/- per litre on petrol and Rs. 7.50/- per litre on diesel. The high prices come despite the fact that there were as many as nine price cuts on fuel with a cumulative reduction of Rs. 14.69/- per litre on petrol since August and Rs. 10.71/- per litre on diesel since December last year. Had it not been for the higher excise duty, the reduction in prices would have been higher.