New Delhi: Jet fuel price was on Friday hiked by a steep 7.6%, the biggest ever increase that took ATF price to all-time high of ₹ 72,282 per kilolitre.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by ₹ 5,146.16 per kilolitre (kl), or 7.6%, to ₹ 72,281.92 per kl with effect from midnight tonight, Indian Oil Corp, the nation’s largest oil firm, said.
The hike in percentage terms is however lower than the 12% hike in rates effected from 16 June, 2009 when prices were hiked by ₹ 3,948.59 per kl to ₹ 36,251.51 per kl.
The price hike from tomorrow will be the fourth straight increase in rates since July, adding to the burden of cash- strapped airlines.
Jet fuel, which had hit an all-time high peak of ₹ 71,028.26 per kl in August, 2008, shortly after international oil rates touched a record $147 per barrel, had fallen to eight-month low of ₹ 61,169.08 per kl in early July.
In Mumbai, jet fuel will cost ₹ 72,830.64 per kl from tomorrow as against ₹ 68,103.26 per kl at present. Jet fuel constitutes over 40% of an airline’s operating costs and the increase in prices will put fresh burden on the cash-strapped airlines.
No immediate comments were available from the airlines on the impact of the price hike on passenger fares.
The three fuel retailers - IOC, Hindustan Petroleum and Bharat Petroleum - revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.
