State-run oil companies Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited on Monday increased jet fuel prices by up to 7.6 per cent and the rates of non-subsidised cooking gas (LPG) by Rs. 10.5 per cylinder.
The price of ATF has been hiked to Rs. 53,353.92 per kilolitre in Delhi from Rs. 49,609.84.
Non-subsidised cooking gas would now cost Rs. 626.5 per 14.2-kg cylinder in Delhi.
Following the rise in ATF price, the shares of Jet Airways and Spicejet fell.
Non-subsidised or market-priced domestic cooking gas would now cost Rs. 626.5 per 14.2-kg cylinder in Delhi compared to Rs. 616 earlier. The price of 19-kg LPG cylinder has been increased to Rs. 1,151 from Rs. 1,134. The price of non-subsidised domestic gas was cut by Rs. 5 per 14.2-kg cylinder on May 1.
The sharp increase in ATF comes at a time when domestic airlines have been facing tough competition from new players and are engaged in a price war. One of the hurting factors for domestic airlines has been higher taxes on ATF levied by the States. Airlines have been seeking to bring ATF under exempted goods. The sharp rise in ATF prices sent shares of Jet Airways, which posted poor results last week, and Spicejet tumbling. Jet Airways shares closed down over 6 per cent at Rs. 362.05, while Spicejet closed down over 3 per cent at Rs. 19.50 on the Bombay Stock Exchange.
Despite a steep increase in ATF, some airlines have ruled out immediate price hike.
