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Airlines feel the pinch as aviation fuel prices rise 12%

Airlines feel the pinch as aviation fuel prices rise 12%
PTI
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First Published: Tue, Jun 16 2009. 01 15 AM IST
Updated: Tue, Jun 16 2009. 03 58 PM IST
New Delhi: After two minor price increases in the last one month, state-run oil firms on Monday again hiked aviation turbine fuel, or ATF, rates by at least 12% on the back of rising global oil prices.
Indian Oil Corp., Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd raised jet fuel prices by Rs3,949-36,252 per kilolitre in New Delhi effective Monday midnight, an IOC official said.
Global crude oil prices have firmed to a seven-month high of $72 per barrel on hopes of demand revival in the US.
The three state-owned retailers had on 1 June raised jet fuel rates by an average of Rs108 per kilolitre, which came on the back of a 1.8% hike on 16 May.
In Mumbai, home to the country’s India’s busiest airport, the prices will go up from Rs33,260.8 per kilolitre to Rs37,367 per kilolitre.
The rise in ATF prices, which constitute 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.
The three oil firms, which review jet fuel rates every fortnight based on trends in global markets, had on 16 April increased prices by about 6.7%. This was followed by a 1% reduction on 1 May, which had brought the rates down to Rs31,614.51 per kilolitre.
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First Published: Tue, Jun 16 2009. 01 15 AM IST
More Topics: Airlines | Aviation | Fuel | Price | Retailers |