New Delhi: Jet fuel prices were hiked by 2% on Friday, reversing the two month declining trend in rates. Aviation turbine fuel (ATF) price at T3 terminal in Delhi was hiked by Rs.1324.84 per kilolitre (kl), or 2%, to Rs.67561.04 kl from Friday, according to Indian Oil Corp. Ltd (IOC), the nation’s largest fuel retailer.
The increase comes after successive reductions in December and January when rates were cut Rs.Rs 688.4 per kl and Rs.1472.92 per kl respectively. In Mumbai, jet fuel will cost Rs.69,826.98 per kl as against Rs.68,446.91 currently. Rates at different airports vary because of differential in local sales tax or value added tax (VAT).
Kolkata would see a price increase of Rs.1432.19 to Rs.76,586.20 per kl while it will cost Rs.73,516.67 in Chennai as against Rs.72,057.08 previously.
Jet fuel constitutes over 40% of an airline’s operating costs and the increase in prices will add to the burden of cash-strapped airlines. No immediate comments were available from the airlines on the impact of the price increase on passenger fares.