Business News: Jet fuel prices to rise by 6.7%; petrol and diesel prices to rise soon.
The price of jet fuel was increased by 6.7% on Saturday, canceling last month’s price cuts, while a rise in gasoline and diesel prices may be imminent due to rising international prices.
The price of aviation turbine fuel (ATF) was raised by Rs 3,885 per kiloliter (kl), or 6.7 percent, to Rs 61,690.28 per kl in the national capital, according to a pricing communication. from state-owned fuel dealers.
Rates vary from state to state depending on local taxes. The price increase follows two cycles of price reduction last month. Prices were reduced by 3% on 1 April and then again by Rs 568.88 per kl (1%) on 16 April. Meanwhile, gasoline and diesel prices remained flat on Saturday for day 16, but oil company officials indicated that rates would rise in the near future.
Despite concerns over rising Covid-19 cases in India affecting demand, crude oil prices on the international market continue to rise due to the strong recovery in US demand and the weakness of the dollar.
“Prices have been on an upward trend for the past 4 days (since April 27),” an official said, adding that the price of Dubai crude oil has increased by $ 2.91 a barrel. Crude oil prices on the international market are expected to remain stable in the near future, putting upward pressure, officials said.
State-owned fuel retailers, IOC, BPCL, and HPCL, who are expected to revise tariffs daily based on input costs, froze tariffs after a marginal price cut on April 15. Gasoline now costs Rs 90.40 per liter in Delhi, while a liter of diesel costs Rs 80.73.
The April 15 cut of 16 paise per liter on petrol and 14 paise on diesel was the fourth drop since March 24. In four reductions since March 24, the price of gasoline has been reduced by 67 paise and diesel by 74 paise. This reduction compared to a Rs 21.58 per liter increase in the price of gasoline since the government raised excise duties in March last year. Diesel prices had risen by Rs 19.18 per liter.
While petrol and diesel prices are reviewed on a daily basis, ATF rates are reviewed on the 1st and 16th of each month. Central and state taxes account for 60% of the retail price of gasoline and over 54% of diesel. The union government collects Rs 32.90 per liter of excise duty on petrol and Rs 31.80 on diesel.