Jet fuel prices hiked by 4.5%
New Delhi: With firming of oil prices in the international market, jet fuel or ATF rates were Wednesday hiked by a steep 4.5 percent, the second increase in a month.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs 2,797.41 per kilolitre (kl), or 4.5 percent, to Rs 65,005.59, according to Indian Oil Corp, the nation's largest oil firm.
The hike comes on back of a 1.7 percent or Rs 1,039.1 per kl hike in rates effected from July 16.
The twin increases snapped a six fortnight trend of reduction in rates, including a steep 5 percent (Rs 3,260 per kl) cut effected from June 16 and about 2 percent (Rs 1,241 per kl) fall in prices from July 1.
Jet fuel, which had hit an all-time high peak of Rs 71,028.26 per kl in August 2008, shortly after international oil rates touched a record USD 147 per barrel, had fallen to eight-month low of Rs 61,169.08 per kl in early July.
In Mumbai, jet fuel will cost Rs 65,884.34 per kl from today as against Rs Rs 63,002.45 per kl previously.
Jet fuel constitutes over 40 percent of an airline's operating costs and the two consecutive increase in prices have wiped away half of the gains the cash-strapped airlines would have made from reductions.
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.