India raises August jet fuel prices

Indian state-controlled refiners have increased jet fuel prices for the first half of August by 4.6pc compared with the second half of July, despite continuing weak demand because of the country's Covid-19 lockdown.

Domestic carriers will pay 43,933 rupees/kilolitre ($585/kl) for jet fuel for the first half of this month in Delhi from Rs41,993/kl for the second half of July. Prices for international carriers, which do not pay Indian taxes, rise to $441/kl during the period from $421/kl from late July.

Jet fuel prices are typically reviewed once a month but have been reviewed twice a month since February. Jet fuel accounts for around 40pc of costs across Indian carriers, twice as much as foreign airlines because of taxes.

Indian demand for jet fuel fell by 66pc in June to 58,000 b/d from 171,000 b/d a year earlier, according to the oil ministry. Demand for jet fuel is the most affected among Indian transport fuels as international travel is banned by the government until 31 August and domestic flights are restricted. The country has extended its four-month lockdown by another month to 31 August.

By S Dinakar