Oil marketing companies raised the aviation turbine fuel (ATF) prices for the second time in a month on Tuesday.
In the national capital, the price of jet fuel was raised by Rs 5,494.5 to Rs 39,069.87 per kilolitre. On June 1, it was raised by Rs 11,030.62 to Rs 33,575.37 per kilolitre, according to data on the Indian Oil Corp’s website.
In the other metro cities of Kolkata, Mumbai and Chennai, the price was increased to Rs 44,024.10, Rs 38,565.06 and Rs 40,239.63 per kilolitre.
The hike may have a major impact on aviation companies’ finances that are under huge stress amid high debt, two months of no revenue and very little passenger traffic expected in the next few months.
Similarly, petrol and diesel prices increased for the 10th straight day. In Delhi, petrol was being sold for Rs 76.73 per litre, higher by 47 paise from Monday. Retail price of diesel was increased by 57 paise to Rs 75.19 per litre.
Consumers are unlikely to get respite from the rising price of auto fuels — petrol and diesel — as oil companies plan to cover their gap of around Rs 8 per litre on their sale by raising retail prices daily for at least next two weeks.
But the quantum of increase may fall from around 60 paise per litre, giving some respite to consumers in midst of several disruptions due to Covid-19 pandemic, according to official sources.
After an 83-day halt since March 16, oil marketing companies have started raising fuel prices daily from June 7. In the past 10 days since, petrol prices in Delhi have risen by Rs 5.47 per litre and diesel Rs 5.8 per litre.
Sources in public sector oil companies said petroleum products might continue its daily upward movement till the end of the month or earlier. But the increase might soften to around 30-40 paise per litre.
While prices have gone up by over Rs 5 per litre, the projected fall in OMCs’ net marketing margin would need petrol and diesel prices to rise by another Rs 4-5 a litre.
The OMCs could also get support from the global oil market where crude prices have gone below $40 a barrel now. If this sustains, petrol and diesel prices may begin to fall from July.