After reducing the jet fuel prices 11 times since September 2008, state-owned oil companies on Sunday announced an increase in the prices of Aviation Turbine Fuel (ATF) by Rs 1.58 per litre.
Following the revision, jet fuel will now cost Rs 27.28 per litre in Delhi from midnight Sunday against the present Rs 27.11 per litre. Prior to this, PSU oil firms had reduced jet fuel prices 11 times since September, 2008 barring one increase of 3.3 per cent on January 16.
In Mumbai, home to the nation's busiest airport, ATF rates have been raised to Rs 28.02 per litre from Rs 27.86 per litre.
Although the price rise is marginal at Rs 1.58 per litre, it indicates a reversal in the trend of oil prices, which after a steep fall have again started increasing and are in the region of $48 a barrel. Crude oil prices fell to $35 a barrel in February, after touching an all time high of $149 a barrel last June.
“The increase in jet fuel prices varies from airport to airport depending on local taxes and levies and an on average worked out to be Rs 1.58 per litre,” said an Indian Oil Corporation official.
ATF prices had peaked to Rs 71.03 per litre (in Delhi) in August, 2008 when crude prices touched $147 per barrel globally. But they have since been slashed every month till October and twice in November. Even after the latest price rise, jet fuel is still cheaper than diesel.
Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum revise ATF rates on the 1st and 16th of every month.