New Delhi: Days after diesel rates were hiked by a steep Rs.5 per litre, jet fuel prices were raised on Saturday by around 2% to Rs.73,711 per kilolitre.
Aviation turbine fuel (ATF) prices at T3 terminal in the Delhi airport have been hiked by Rs.1,429 per kilolitre, or 1.97%, to Rs.73,711 per kilolitre with effect from midnight, according to Indian Oil Corp. Ltd (IOC), the nation’s largest fuel retailer.
The government had on Thursday announced the first hike in diesel rates in more than 14 months.
Saturday’s ATF price hike and 1 September’s 7.6% increase were trigerred by firming international oil rates and a decline in rupee value against the US dollar.
The price hike is the fifth increase in rates since July, adding to the burden of cash-strapped airlines.
In Mumbai, jet fuel will cost Rs.74,332 per kilolitre from Sunday against Rs.72,830.64 per kilolitre at present. Jet fuel constitutes around 40% of an airline’s operating costs and the increase in prices will put fresh burden on cash-strapped airlines.
No immediate comments were available from the airlines on the impact of the price hike on passenger fares.