Oil cos hike ATF prices by 1.4 per cent

The price of Aviation Turbine Fuel (ATF) in the national capital was increased by Rs 846.87 per kilolitre, or 1.45 per cent, to Rs 59,157.32 per kl, an official of Indian Oil Corp, the nation's largest fuel retailer, said.

The hike comes on back of a massive 6.14 per cent increase in rates effected from March 16 in line with rising crude oil prices.

The basket of crude oil that India buys averaged USD 110.66 per barrel in March, as against an average price of USD 101.16 a barrel in February.

Jet fuel in Mumbai is priced at Rs 59,900.02 per kl from today, as against Rs 59,031.39 per kl till yesterday.

Today's hike is the 12th straight increase in jet fuel prices since October, 2010, when international crude oil prices started soaring.

The ATF price in Delhi on October 1, 2010 was Rs 40,728.52 per kl. The rates have been increased by Rs 18,428.8 per kl, or 45.24 per cent, in 12 tranches since then.

No comment could be immediately obtained from airline companies on the impact of the latest price hike on passenger fares.

Fuel accounts for 40 per cent of airlines' operating cost. Indian Oil Corp and sister public sector retailers Bharat Petroleum and Hindustan Petroleum revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.