Jet fuel (ATF) prices fell 2.2% on Saturday, reflecting lower international oil prices.

According to a price notice from the state-run fuel retailer, the price of aviation turbine fuel (ATF) was reduced by Rs 3,084.94 per kilolitre, or 2.2%, to Rs 138,147.93 per kilolitre.

This is only the second rate cut this year. Prices peaked at Rs 141,232.87 per kilolitre (Rs 141.23 per litre) last month.

ATF prices are revised on the 1st and 16th of each month based on the international benchmark oil prices for the previous two weeks. There was no change in interest rates on July 1.

This followed a 16% rise in home prices to a record high, pushing prices to a new all-time high.

Since then, international oil prices have softened amid fears of a recession in major economies. Oil prices in Ukraine are at pre-war levels.

On June 16, the price of ATF, a fuel that helps planes fly, rose by Rs 19,757.13 per kilolitre. After that, on June 1, the rate was slightly reduced by 1.3% (Rs 1,563.97 per kilolitre).

But for the one-off drop on June 1, ATF prices have been rising throughout 2022.

In total, rates have risen 11 times since the start of the year. This caused interest rates to nearly double in six months.

Before Saturday’s cut, prices had risen by 91%10.46 per kilolitre) since January 1.

With jet fuel accounting for nearly 40% of an airline’s operating costs, higher prices have led to higher flight costs. There is a slight relief now.

Meanwhile, petrol and diesel prices remained unchanged at Rs 96.72 per litre and Rs 89.62 per litre, respectively.

The government’s cut in excise duty helped to lower petrol prices by Rs 8.69 per litre and diesel prices by Rs 7.05 per litre on May 22. But for this, the base price has remained unchanged since April 6.

Before this, prices had risen by a record Rs 10 per litre.

Petrol, diesel and domestic natural gas retail well below cost. Petrol and diesel prices are revised daily based on comparable prices on the international market.