ATF price hiked by steep 5.8%
New Delhi: Jet fuel (ATF) prices were Sunday hiked by a steep 5.8 percent, the second consecutive increase since June, as rupee depreciation made imports costlier.
Aviation Turbine Fuel, or ATF, price at Delhi was hiked by Rs 3,617.84 per kilolitre (kl), or 5.8 percent, to Rs 66,034 per kl with effect from midnight tonight, according to Indian Oil Corp, the nation's largest fuel retailer.
The increase comes on back of a marginal hike in rates on June 1 when prices climbed to Rs 62,416.16 per kl from Rs 62,649.95 previously.
The two hikes follow similar number of steep reduction in rates - by 5.5 percent (Rs 3884.98 per kl) on April 1 and 5.3 percent or Rs 3,545.94 per kl from May 1.
ATF price in March had touched Rs 70,080.87 per kl in Delhi.
Officials said the current increase follows rupee depreciating to record lows of 60.70 to a US dollar, which made import of raw material (crude oil) costlier.
In Mumbai, jet fuel will cost Rs 68,148 per kl from tomorrow as against Rs 64,381.15 per kl currently.
Rates at different airports vary because of differential in local sales tax or VAT.
Kolkata would see price hike of Rs 3,737 to Rs 75,994 per kl, while it will cost Rs 71,851 in Chennai as against Rs 67,926.43 per kl previously.
Jet fuel constitutes over 40 percent of an airline's operating costs. 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 of every month, based on the average international price in the preceding month.