New Delhi: For the fourth time in two months, state-run oil firms on Tuesday hiked jet fuel or ATF price by more than 6% on firming international oil prices.
Indian Oil, Bharat Petroleum and Hindustan Petroleum raised aviation turbine fuel (ATF) price by Rs2,306 to Rs38,558 per kilolitre in Delhi effective midnight tonight, an IOC official said.
The hike comes on back of over 12% hike on 15 June. ATF price on that day were raised by Rs3,949 to Rs 36,252 per kilolitre in Delhi.
International crude oil prices have firmed to a seven-month high of $72 per barrel on hopes of demand revival in US.
The three state-run retailers had from 1 June raised jet fuel rate by an average of Rs108 per kl, which came on the back of a 1.8% hike in rates on 16 May.
In Mumbai, home to the nation’s busiest airport, the rate will go up from Rs37,367 per kl to Rs 39,789 per kl. The rise in ATF price, which constitutes 40% of airlines’ operating cost, may further put pressure on cash-strapped domestic carriers.
No comments from any of the leading airlines were immediately available on the latest price hike. Jet fuel in Kolkata will be dearer at Rs46,711 per kl from Rs44,289 per kl, while in Chennai the price has been raised by Rs2,500 per kl to Rs42,524 per kl.
ATF prices had peaked to Rs71,028.26 per kl (in Delhi) in August last year on international crude prices touching a historic high of $147 a barrel. But subsequently the rates had come down, slashed every month till October and twice a month from November.
The three firms, which revise jet fuel rate every fortnight based on trends in international markets, had on 16 April increased ATF rate by about 6.7%. This was followed by a marginal reduction in rates by 1% on 1 May.