Jet Fuel Demand

Jet fuel (ATF) price on Wednesday was hiked by 4 per cent in line with firming international oil prices but petrol and diesel rates remained on freeze for a record 10th month in running. Aviation turbine fuel (ATF) price was increased by Rs 4,218 per kilolitre, or 3.9 per cent, to Rs 1,12,356.77 per kl in the national capital, according to a price notification of state-owned fuel retailers. The increase follows three rounds of reduction since November. The price on January 1 was reduced to Rs 1,08,138.77 per kl from Rs 1,17,587.64. Prior to that, the price was slashed by 2.3 per cent on December 1 and 4.19 per cent on November 1. The rate hike will increase the burden on airlines for whom fuel makes for almost 40 per cent of the operating cost. ATF price is revised on the 1st of every month based on the average rate of international benchmark and foreign exchange rates. Petrol and diesel prices, however, continued to remain on freeze for a record tenth month in a row. Petrol costs

Shares of Reliance Industries fell nearly 3 per cent on Thursday after the government raised the tax on export of diesel and jet fuel (ATF) and hiked the windfall profit levy on domestically-produced crude oil. The market heavyweight stock declined 2.99 per cent to settle at Rs 2,560.20 apiece on the BSE. During the day, it fell 3.30 per cent to Rs 2,552. On the NSE, it went lower by 2.93 per cent to Rs 2,560.40 apiece. The company's market valuation also got eroded by Rs 53,578.11 crore to Rs 17,32,034.89 crore on the BSE. Reliance Industries was the biggest laggard among the Sensex components. The 30-share BSE Sensex fell 770.48 points or 1.29 per cent to settle at 58,766.59. The government on Thursday raised the tax on export of diesel and jet fuel and hiked the windfall profit levy on domestically-produced crude oil in line with rising product margins and oil prices. While private refiners Reliance Industries Ltd and Rosneft-based Nayara Energy are the principal exporters of

OMCs to shift to single uniform system instead of the prevailing dual pricing mechanism for domestic and overseas airlines

Seats are difficult to get on flights to Europe and US and those that are available fall in the higher slabs

South Korean airlines are set to raise fuel surcharges on international routes next month as jet fuel prices rise at a faster pace, industry people said on Wednesday.

At a London conference of the leasing industry, which buys around 60% of global jet output, Boeing downplayed fears of a structural contraction of business and leisure travel.

"Globally, some countries with high rates of vaccination are learning to live with the coronavirus," said J Y Lim, Advisor for oil markets at S & P Global Platts Analytics.

Fresh travel restrictions due to a resurgence in Covid-19 infections have dashed hopes for a recovery in Asian jet fuel demand this year and worsened the outlook for the entire refining sector

This is the second reduction in rates this month

Domestic aviation fuel sales amounted to about 2 million tonnes (523,300 barrels per day) last month

Diesel purchases went up for first time this financial year in October 1-15 period. Consumption of diesel was up 8.8%, of petrol by 1.5% YoY

The number of flights increased in the United States in early July, making some traders optimistic.

The country's petroleum product consumption fell 17.79 per cent to 16.08 million tonnes in March as diesel, petrol and ATF demand fell

This is the second straight monthly increase in rates warranted due to firming up of prices in the international market

Average monthly demand for jet fuel could break through 700,000 tonnes this year, up from 2017's record 623,000 tonnes