Jet Fuel Or Petrol: What's Cheaper?

The soaring prices of petrol and diesel have become a cause of concern for the common people across the country. However, amidst this, a viral claim on social media stirred conversations, asserting that aeroplane fuel is considerably cheaper compared to petrol and diesel. This viral news rapidly circulated among netizens, prompting many to question the underlying reasons, especially considering that the purest form of crude oil is used in aeroplanes. Let’s delve into the details surrounding jet fuel and its pricing.

The fuel utilized in aeroplanes is known as Aviation Turbine Fuel (ATF). But where does ATF originate? Similar to other fuels, ATF is extracted from oil reservoirs, with kerosene, the most impure form of crude oil, serving as its precursor. Kerosene, commonly used in numerous Indian households, undergoes refining to produce ATF, which is subsequently brought to market.

How does ATF differ from other crude oils available in the market?

During the refining process of crude oil, jet fuel and petrol are separated. ATF stands apart from petrol or diesel due to differing refining stages beyond a certain point. Notably, ATF possesses unique characteristics, including a lower freezing point, higher flash point, and lower viscosity compared to petrol or diesel. These attributes render ATF suitable for use in high altitudes and extreme temperatures.

How is ATF cheaper than petrol?

Given the apparent similarities, one might wonder why aeroplane fuel is cheaper than petrol. Multiple factors contribute to this price disparity. Taxes and regulations imposed on petrol are often higher than those on ATF. Additionally, the refining process for jet fuel tends to be more cost-effective compared to other crude oils. Furthermore, the fixed supply chain of ATF contrasts with the irregular supply chain of petrol or diesel. Moreover, the prices of ATF, like petrol and diesel, vary from one location to another due to differing Value Added Tax (VAT) rates imposed by different states. These factors collectively contribute to the phenomenon wherein ATF is typically priced lower than other crude oils available in the market.