India cuts 1H August jet fuel price as demand stays low

Indian state-controlled refiners have lowered jet fuel prices for the first half of August by 1pc from two weeks earlier, with consumption holding below pre-Covid-19 levels even as lockdowns ease.

Prices of jet fuel for domestic airlines in Delhi have decreased to 69,136 rupees/kilolitre ($147.50/bl) for the first half of this month from Rs69,858/kl for the second half of July, according to India's biggest state-controlled refiner IOC. Prices for domestic airlines on international routes in Delhi fell to Rs699/kl from $706/kl in the previous two-week period.

Jet fuel demand averaged 74,000 b/d in July compared with 63,000 b/d in June as states relaxed lockdowns, but fell from 158,000 b/d in July 2019, according to data from state-controlled refiners that account for around 90pc of the country's fuel sales.

Jet fuel is the transport fuel most affected by the pandemic, as strict domestic air traffic regulation and an international travel ban have weighed on its consumption despite the easing of lockdowns. India has extended a suspension on international passenger flights until the end of this month.

Prices of jet fuel fell to $78.80/bl fob Singapore on Friday, down from a 1½-year high of $79.90/bl in early July, according to Argus' assessments.

Jet fuel consumption will reach pre-pandemic levels by the end of the April 2021-March 2022 fiscal year, IOC said on 30 July.

By Sathya Narayanan