New Delhi: Oil marketing firms in India lowered jet fuel prices by about 2%, their second cut this year, as Brent prices continue to correct on increasing pessimism about slowing growth.
State-run Indian Oil Corp Ltd. cut aviation turbine fuel prices to Rs138,147.93 per kiloliter ($1,730) in New Delhi effective July 16, according to information available on its website. The revised price is for local airlines.
Escalating concerns over an economic slowdown have been dragging global oil prices, with Brent now about 18 per cent off its June peak. It’s still up 30 per cent this year and continues to weigh on airlines’ performance as they struggle to handle surges in passenger traffic amid elevated costs.
“Airlines in the Asia Pacific may face significant cost pressures into 2023 as inflationary impacts affect key cost categories even as their revenues begin to benefit from accelerating market reopenings,” Bloomberg Intelligence analyst Tim Bacchus wrote in a note on Friday.