Oil companies hike jet fuel prices
After a one-off reduction, state-owned oil companies today hiked aviation turbine fuel, or jet fuel, prices by a steep 3.8% in line. The hike comes on back of a marginally 0.5% cut in rates to Rs 58,271 per kl effected from October 16.india Updated: Oct 31, 2011 19:56 IST
After a one-off reduction, state-owned oil companies on Monday hiked aviation turbine fuel (ATF), or jet fuel, prices by a steep 3.8% in line.
The price of ATF at Delhi's T3 airport was raised by Rs 2,845 per kilolitre (kl), or 3.8%, to Rs 61,115 per kl with effect from midnight on Monday, an official of Indian Oil Corp (IOC), said.
The hike comes on back of a marginally 0.5% cut in rates to Rs 58,271 per kl effected from October 16.
Prior to that, the nation's largest fuel retailer, 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, mainly because imports had become costlier due to fall in rupee against the US dollar.
ATF in Mumbai, home to the nation's busiest airport, will cost Rs 2,950 per kl more at Rs 61,984 per kl from Tuesday as against the old price of Rs 59,021 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.