Business

Oil firms increaseATF prices by 7.25%

Aggravating the problem for loss-making airlines, oil marketing companies have increased the domestic Aviation Turbine Fuel (ATF) prices by 7.25% effective October 1.

“This is on account of higher jet fuel prices in the international market coupled with the weakening of Indian rupee as against U.S. dollar (exchange fluctuation),” Indian Oil said in a statement. For Mumbai, the increase of about ₹2,650/KL is on account of higher jet fuel prices in the international market and an increase of about ₹2,250/KL is on account of weakening of the Indian rupee during the last month and ₹116/KL is on account of freight charges. All these put together works out to ₹5,016/KL.

On September 30, the ATF price in Mumbai was ₹69,161/KL. So prices have gone up by 7.25%.

“The increase in domestic selling prices of ATF (₹5,016/KL at Mumbai) is therefore purely on account of the above factors.

“The Government of India has levied 5% customs duty on ATF with effect from 27 September 2018 which, however, is not being passed on to the airlines,” the statement added.


Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Dec 3, 2021 1:06:32 AM | https://www.thehindu.com/business/oil-firms-increaseatf-prices-by-725/article25090363.ece

Next Story