After a one-off rate cut, state-run oil companies on Tuesday again raised jet fuel or ATF prices, this time by over 1.7 per cent, in line with the rising trend in international oil prices.
Aviation turbine fuel (ATF) rates in Delhi have been raised by Rs. 688, or 1.7 per cent, to Rs. 40,192 per kilolitre effective midnight tonight, an official of Indian Oil Corp (IOC), the nation’s largest oil firm, said.
The hike comes on the back of a massive 7.17 per cent cut in ATF prices to Rs. 39,503.56 per kl from June 1. This was the first cut in nearly four months, which came amidst softening of global oil rates.
ATF in Delhi was priced at Rs. 37,982.22 per kl in the second half of February before a spurt in international rates prompted rate hikes every fortnight subsequently. Jet fuel prices had risen by 12 per cent in six installments since March 1.
Jet fuel constitutes roughly 40 per cent of the operating cost of an airline and today’s hike in fuel rates will increase the burden on Indian carriers.
No immediate comment could be obtained from airlines on the price reduction and if it would be passed on to passengers.
In Mumbai, the price of ATF was raised by Rs. 717 to Rs. 41,469 per kl.
IOC and its sister PSU fuel retailers, Hindustan Petroleum and Bharat Petroleum, revise jet fuel prices on the first and the 16th of every month, based on the average global oil price in the previous fortnight.