Oil companies hike ATF prices by 2%
New Delhi: State-owned oil companies hiked jet fuel price by 2 percent, the second increase in rates this month.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs 1,298.88 per kilolitre (kl), or 2 percent, to Rs 65,949.34 per kl with effect from Friday, Indian Oil Corp, the nation's largest retailer, said.
The increase in price comes on back of a 3.2 percent jump in rates effected from March 1 on back of firming international oil prices.
In Mumbai, ATF will cost Rs 66,989.74 per kl from tomorrow, against the current rate of Rs 65,636.74 per kl.
Jet fuel constitutes over 40 percent of an airline's operating cost and the hike in prices will add to the burden of the cash-strapped airlines.
No immediate comment was available from the airlines on the impact of the price increase on passenger fares.
The three fuel retailers revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.