Indian Airlines Ask Refiners to Postpone Local Jet Fuel Price Hike
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Major Indian airlines have asked the state oil companies to postpone hikes in jet fuel prices for domestic flights until the Middle East crisis is over, Bloombergreportedon Tuesday, quoting sources with knowledge of the development.
India’s oil marketing companies (OMCs) have raised the prices of jet fuel for international flights, which have more than doubled compared to before the Iran war.
But they haven’t raised the prices for domestic flights, yet.
A decision is expected by June 1, with state oil companies considering a 25% increase.
They are now discussing the idea to postpone the hike proposed by the airlines including Air India, IndiGo, and SpiceJet, according to Bloomberg’s sources.
The airlines are asking for delayed price hikes in order to limit losses on their jet fuel costs, which have surged since the war in Iran began.
While jet fuel prices for domestic flights haven’t increased, prices of jet fuel for international flights doubled in April.
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Airlines are also lobbying for preferential tax treatment as oil costs make up about 40% of all their costs.
Meanwhile, after holding off on price hikes for more than two months since the Iran war started, Indian state marketing companies on Tuesday raised the prices of road transport fuelsfor the second timein less than a week.
Since the war in the Middle East began and cut off over 40% of India’s crude oil flows, those that passed through the Strait of Hormuz, one of the highest-flying economies in Asia has seen its oil import bill soar, investors fleeing the capital market, and the local currency plunging to an all-time low against the U.S.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | ▲ +0.34% |
| WTI Crude | $96.90/bbl | ▲ +0.21% |
| EN590 Diesel | $846/MT | ▲ +0.18% |
| Jet Fuel A-1 | $1090/MT | ▲ +0.55% |
| Mazut M100 | $450/MT | ▼ -0.15% |
| Bitumen 60/70 | $470/MT | ▲ +0.08% |
| Sulphur Gran 99.5% | $470/MT | ▼ -0.44% |
| Urea 46% Gran | $650/MT | ▲ +1.12% |
| NPK 16-16-16 | $460/MT | ▼ -0.28% |
| Nat Gas TTF | $15.42/MMBtu | ▲ +0.92% |
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