New Delhi: State-owned oil retailers on Saturday raised the price of jet fuel, or ATF, marginally by Rs104 per kilolitre, making it the sixth straight increase since March.
Aviation turbine fuel (ATF) rates in Delhi have been hiked by Rs104, or 0.24%, to Rs42,556 per kilolitre with effect from Saturday midnight, an official of Indian Oil Corp, the nation’s largest oil firm, said.
Jet fuel constitutes roughly 40% of the operating cost of an airline and this increase in fuel rates would put a nominal, but extra burden on Indian carriers.
It was not immediately clear if airlines would pass on this burden to passengers.
ATF prices have been raised by 12% in six installments since 1 March. The jet fuel price in Delhi was Rs37,982.22 per kl in February.
In Mumbai, the price of ATF on Saturday was raised by Rs108 to Rs43,932 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.
Predicting tougher times ahead, Reliance Industries chairman and managing director Mukesh Ambani on Friday stated that global crude oil prices may touch the $100 per barrel mark soon. Crude is currently trading below $75 per barrel.