In what could make airfare costlier, the price of Air Turbine Fuel (ATF) has been hiked by a steep 9 percent.
Zee Media Bureau
New Delhi: In what could make airfare costlier, the price of Aiviation Turbine Fuel (ATF) has been hiked by a steep 9 percent.
Jet fuel constitutes over 40 percent of an airlines operating cost and the price increase will add to the financial burden on cash-strapped carriers.
Rates vary at different airports because of differential local sales tax or value-added tax (VAT).
In the fourth straight monthly increase in rates on global cues, ATF price in Delhi was increased by Rs 3,945.47 per kilolitre, or 9.2 percent, to Rs 46,729.48 per kilolitre, the oil companies announced today.
The hike comes on the back of 1.5 percent increase effected on May 1 and a steep Rs 3,371.55 (8.7 percent) hike on April 1. Prior to that, rates were hiked by steep 12 percent, or by Rs 4,174.49, on March 1.
The move comes just a day after Petrol price was hiked by Rs 2.58 a litre and diesel by Rs 2.26 per litre, the second increase in rates this month.
Petrol will cost Rs 65.60 per litre in Delhi after the increase while diesel will cost Rs 53.93/litre. Prices were last hiked on May 17.