Jet fuel price raised by Rs40.35 per litre

The government has increased the price of jet fuel used by commercial aircraft by Rs40.35 per litre, pushing up operating costs for airlines and raising the likelihood of an increase in airfares.

According to sources, the latest increase has taken the price of jet fuel to Rs291.55 per litre. The sources said the latest revision comes just two weeks after an earlier increase, bringing the cumulative rise in jet fuel prices over the past fortnight to Rs53.58 per litre.

They said the increase was driven by rising international oil prices. Sources added that the higher fuel cost is expected to increase airlines' operating expenses, making an increase in airfares more likely.

The government on Friday announced that petroleum prices would now be reviewed and notified on a daily basis, replacing the weekly pricing mechanism, as renewed tensions between the United States and Iran continue to drive volatility in global oil markets and raise concerns over fuel supplies.

Under the new pricing mechanism, the government increased the ex-depot price of High-Speed Diesel (HSD) by Rs31.05 per litre, from Rs323.30 to Rs354.35, while the price of petrol by Rs5.44 per litre, from Rs310.71 to Rs316.15, with the revised rates taking effect from July 18, 2026.

Officials said the daily review system would allow domestic fuel prices to reflect changes in international oil markets more quickly while reducing the risk of supply disruptions and speculative hoarding.

The government earlier revised fuel prices on a fortnightly basis but decided to review the prices on a weekly basis during the first phase of the US-Iran conflict.

With tensions escalating again after a fresh exchange of strikes and growing concerns over disruptions to oil supplies through the Strait of Hormuz, authorities have opted for daily price adjustments to ensure uninterrupted fuel availability and greater transparency in the pricing mechanism.