After two consecutive price cuts, state-owned oil companies on Thursday hiked jet fuel, or ATF, price by 2.5 per cent in line with firming of international oil rates.
Aviation Turbine Fuel (ATF) price at Delhi’s T3 airport was hiked by Rs. 1,429 per kilolitre, or 2.5 per cent, to Rs. 57,689 per kl with effect from midnight tonight, said an official of Indian Oil, the nation’s largest fuel retailer.
The IOC and its sister retailers, Hindustan Petroleum and Bharat Petroleum had in two rate cuts on August 16 and September 1 lowered jet fuel price by Rs. 1,585 per kl.
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Thursday’s hike has almost wiped away the reductions.
ATF in Mumbai, home to the nation’s busiest airport, will cost Rs. 1,475 per kl more at Rs. 58,452 per kl from on Friday as against the old price of Rs. 56,978 per kl.
Jet fuel makes up for 40 per cent of an airlines’ operating cost.
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No comment could be immediately obtained from airlines on the impact of the price hike on passenger fares.
ATF prices vary from airport to airport, depending on the local sales tax or VAT.
The three fuel retailers revise jet fuel prices on the first and 16th of every month, based on the average international price in the preceding fortnight.