India slashes jet fuel prices further
Indian state-controlled refiners have slashed jet fuel prices by 29pc this month after cutting them by 22pc in March as the coronavirus outbreak restricts demand for air travel.
Jet fuel prices in Delhi have been cut to 35,490 rupees/kilolitre ($467/kl) from 1 April from Rs50,171/kl last month. Refiners cut jet fuel prices in two tranches last month, the first on 1 March by 10.4pc and then on 21 March by 12pc.
Prices for international carriers, which do not pay Indian taxes, have also fell to $363/kl this month from $521/kl on 21 March and from $593/kl on 1 March. Jet fuel prices are typically reviewed only once a month. Jet fuel accounts for around 40pc of Indian carriers' costs, twice as much as foreign airlines because of the high taxes.
Prices were reduced in line with falling international crude prices, although this was offset by a fall in the value of the rupee against the US dollar.
All India's international and domestic flights carrying passengers have been halted, grounding over 600 aircraft in the country. Domestic airlines with mounting debts and no cash flow are struggling to pay employees and maintain aircraft. Private-sector Air Deccan has shut down and put its staff on leave without pay.
India's government now plans to start allowing domestic and international flight operationsin a staggered manner from 15 April with all private-sector carriers accepting bookings. But state-controlled Air India, the country's largest full service airline, is only taking bookings from 1 May.
Indian demand for jet fuel in March dropped by over 20pc from around 180,000 b/d a year earlier, according to state-controlled refiners. Demand for jet fuel had increased to 187,500 b/d in February from 184,600 b/d a year earlier, according to preliminary data from the oil ministry.
India's air passenger traffic rose by 9pc in February from a year earlier, with domestic airlines carrying 12.36mn passengers during the month.
By S Dinakar
source: Argus Media
Top News
Glencore in talks to sell Philippine copper smelting unit
Rasul Khalife Soltani, Secretary of the Iranian Steel Producers Association on the sidelines of the 1403 Steel Symposium:
Mobarakeh steel is producing green steel through scrap recycling
India’s record gold import said to be due to calculation error
Norilsk Nickel plans to sell all it produces in 2025
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Norge Mining acquires Europe’s largest natural graphite producer
Mercuria partners with Zambia on metals trading venture
Aluminum price falls to one-month low in wider commodity slump
Lure of Anglo’s copper mines could test BHP’s spending resolve
Copper giant Peru foresees another production plateau in 2025
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Mercuria partners with Zambia on metals trading venture
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Lure of Anglo’s copper mines could test BHP’s spending resolve
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Glencore in talks to sell Philippine copper smelting unit
