After two months of price cuts, the State-run oil companies on Friday hiked aviation turbine fuel (ATF) price by a steep 6.5 per cent in step with hardening international rates.
Jet fuel price in Delhi was increased by Rs 2519.83 per kilolitre to Rs 41216.43 per kl effective midnight Friday, an official of Indian Oil Corp, the nation’s largest oil firm, said.
IOC and sister PSUs, Hindustan Petroleum Corp and Bharat Petroleum Corp, had since November cut ATF rates thrice — from Rs 40422.62 per kl on November 16 to Rs 38696.6 on January 1.
International crude prices have firmed up this month to $82-84 per barrel, leading to hike in jet fuel rates.
The three oil firms revise jet fuel prices on the first and the 16th day of every month based on the average global oil price in the previous fortnight.
In Mumbai, the rates were increased to Rs 42535.61 from Rs 39910.79 per kl.
ATF rates had peaked to Rs 71,028.26 per kl in August 2008 when international crude oil prices touched a historic high of USD 147 per barrel.
Jet fuel constitutes roughly 40 per cent of the operating cost of an airline and the reduction in fuel rates would help ease the burden of Indian carriers, most of whom are loss making.