Jet fuel price goes up, passenger fare may follow
State-owned oil firms on Saturday raised jet fuel, or ATF, prices by 2.7 per cent after lowering the rates at the last fortnightly revision on July 16.
Aviation Turbine Fuel (ATF) rates in Delhi will go up by Rs 1,078 per kilolitre (kl), or 2.7 per cent, to Rs 41,177 per kl from midnight tonight, said an official of the Indian Oil Corporation, the nation's largest fuel retailer.
The increase follows a 3.3 per cent, or Rs 1,390 per kl, hike in prices that oil firms had announced on July 16. Including today's (Saturday) hike, ATF rates, which make up for roughly 40 per cent of the operating cost of an airline, have been cranked up on nine occasions since March. However, exceptions were made on two occasions--June 1 and on July 16--when the rates were cut.
Jet fuel in Delhi was priced at Rs 37,982.22 per kl in the second half of February before international oil rates started firming up resulting in increase in domestic rates.
Today's hike in fuel rates will increase the burden on Indian carriers, but no comments could immediately be obtained from airlines on the impact on passenger fares.
In Mumbai, the price of ATF was raised by Rs 1,123 to Rs 42,484 per kl.
IOC and its sister PSU fuel retailers, Hindustan Petroleum and Bharat Petroleum, revise jet fuel prices on the first and the 16th of every month, based on the average global oil price in the previous fortnight.
