𝗝𝗲𝘁 𝗙𝘂𝗲𝗹 𝗣𝗿𝗶𝗰𝗲𝘀 𝗥𝗶𝘀𝗲 𝟭𝟬 𝗣𝗲𝗿𝗰𝗲𝗻𝘁 𝗮𝘀 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗣𝗹𝗮𝗻 𝗦𝘁𝗮𝗿𝘁𝘀

𝗝𝗲𝘁 𝗙𝘂𝗲𝗹 𝗣𝗿𝗶𝗰𝗲𝘀 𝗥𝗶𝘀𝗲 𝟭𝟬 𝗣𝗲𝗿𝗰𝗲𝗻𝘁 𝗮𝘀 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗣𝗹𝗮𝗻 𝗦𝘁𝗮𝗿𝘁𝘀

Domestic jet fuel prices rose about 10 percent on Tuesday. State-owned oil companies launched a government-backed price stabilisation scheme. Airlines are able to lock in fuel rates for up to three years.

• The fixed price is about Rs 115 per litre. The previous rate was Rs 104.93.
• The scheme is voluntary. Airlines choose between fixed pricing and market-based pricing.
• Participants pay a fixed base price of Rs 86.32 per litre plus airport charges, oil company margins, and taxes.
• Effective selling prices stand at about Rs 115 per litre in Delhi, Rs 114.5 in Mumbai, and Rs 139 in Chennai.
• The Union Cabinet approved a Rs 10,000-crore price stabilisation mechanism.
• If global benchmark prices rise above Rs 86.32 per litre, the government will provide interest-free advances to oil companies.
• If prices fall below the benchmark, the excess amount returns to the Consolidated Fund of India.
• Officials describe the arrangement as a stabilisation tool, not a subsidy.

Jet fuel accounts for about 40 percent of airline operating expenses. This share climbs to 60 percent during periods of high fuel prices. International jet fuel prices reached nearly Rs 142 per litre in May. Prices stood at about Rs 60.5 per litre before the West Asia conflict.