Oil companies hike jet fuel prices
State-owned oil companies today hiked jet fuel prices for the second time this month, raising rates by a steep 2% with effect from today midnight.business Updated: Nov 15, 2011 20:31 IST
State-owned oil companies on Tuesday hiked jet fuel prices for the second time this month, raising rates by a steep 2% with effect from Tuesday midnight.
"The price of aviation turbine fuel (ATF), or jet fuel, at Delhi's T3 airport was raised by Rs 1,195 per kilolitre (kl), or 1.95%, to Rs 62,310.33 per kl with effect from midnight tonight, an official of Indian Oil Corp, the nation's largest fuel retailer, said.
The increase comes on back of a massive 3.8% or Rs 2,845 per kl hike in rates effected from November 1.
But for a one-off marginal reduction in mid-October, ATF prices have been on the climb since September. IOC and other state retailers, Hindustan Petroleum and Bharat Petroleum, had on October 1 and September 16 and raised jet fuel prices by 2.5% and 1.5% respectively, as imports became costlier due to a fall in rupee value against the US dollar.
ATF in Mumbai, home to the nation's busiest airport, will cost Rs 63,228.40 per kl from Wednesday as against current rate of Rs 61,983.64 per kl.
Jet fuel makes up for 40% of an airlines' operating cost and the steep hike in prices will raise burden on the cash-strapped airlines. No immediate comment was available from airlines on the impact of the price hike on passenger fares.
ATF prices vary from airport to airport, depending on the local sales tax or VAT.
The three fuel retailers revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.