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ATF price hiked by over 2.7%

PTI | Last Updated: Wednesday, January 1, 2014 - 18:31

New Delhi: Jet fuel or ATF prices were Wednesday hiked by over 2.7 percent, the second increase in rates in one month.

Aviation Turbine Fuel, or ATF, price at Delhi was hiked by Rs 2,036.59 per kilolitre, or 2.74 percent, to Rs 76,241.33 per kl, according to Bharat Petroleum Corp Ltd (BPCL).

The increase follows a marginal Rs 597.48 per kl or 0.8 percent hike in rates effected from December 1.

ATF prices had touched a life time high of Rs 77,089.42 per kl in October following five consecutive increases since June as rupee depreciated against the US dollar, making oil imports costlier.

However, the rupee's appreciating thereafter helped trim cost, leading to a steep 4.5 percent cut in prices in November. However, rates have been increased in subsequent month as rupee value has dipped marginally.

In Mumbai, jet fuel costs Rs 78,783.83 per kl from today as against Rs 76,658.27 per kl previously, BPCL said.

Rates at different airports vary because of difference in local sales tax or VAT.

Jet fuel constitutes over 40 percent of an airline's operating costs and the price hike will raise the fuel cost of the cash-strapped carriers.

No immediate comments were available from the airlines on the impact of the price hike on passenger fares.

The three fuel retailers -- Indian Oil Corp (IOC), Hindustan Petroleum Corp Ltd (HPCL) and BPCL -- revise jet fuel prices on the 1st of every month, based on the average international price in the preceding month.

First Published: Wednesday, January 1, 2014 - 18:28
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