Jet fuel prices hiked by 3.6%

Jet fuel prices hiked by 3.6%

New Delhi: State-owned oil firms on Wednesday hiked jet fuel prices by a huge 3.6% to Rs46,876.58 per kl, making it the fifth straight increase in rates since October when international crude oil prices started climbing.

Aviation Turbine Fuel (ATF) rates in Delhi have been hiked by Rs1,636.58 per kilolitre, or 3.6%, with effect from midight tonight, an official of Indian Oil Corp (IOC), the nation’s largest fuel retailer, said.

The latest hike comes on the back of a 1.4% raise on 1 December and a massive 5.5% increase effected on 16 November, in sync with the rise in global rates.

With this hike, IOC and sister public sector retailers Bharat Petroleum and Hindustan Petroleum have raised prices of jet fuel, or ATF, on five occasions since October.

The ATF price in Delhi on 1 October was Rs40,728.52 per kl. The rates were increased by 15% in five tranches since then, in tandem with a surge in global oil prices to $90 per barrel mark.

Jet fuel, will cost 47084.40 per kl in Mumbai, home to the nation’s busiest airport, from tomorrow, as against 5,379.62 per kl currently.

No comment could be immediately obtained from airline companies, for whom fuel cost accounts for 40% of their operating cost, on the impact of the latest price increase on passenger fares.

The three state-owned oil retailers revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.

In Kolkata, the ATF price has been hiked by Rs1,731.84 to Rs54183.98 per kl, while in Chennai, it will cost Rs50269.99 per kl as against Rs48,496.70 per kl currently.