Mumbai: With firming of oil prices in the international market, jet fuel or aviation turbine fuel prices were today hiked by 4.5 percent, on the back of a 1.7 percent or Rs 1,039.1 per kl hike in rates effected from July 16.
ATF prices in Delhi were hiked by Rs 2,797.41 per kilolitre (kl) or 4.5 percent to Rs 65,005.59, according to Indian Oil Corporation.
The twin increases snapped a six fortnight trend of reduction in rates, including a steep 5 percent (Rs 3,260 per kl) cut effected from June 16 and about 2 percent (Rs 1,241 per kl) fall in prices from July 1.
Jet fuel, which had hit an all-time high of Rs 71,028.26 per kl in August 2008, shortly after international oil rates touched a record $147 per barrel, had fallen to an eight-month low of Rs 61,169.08 per kl in early July.
In Mumbai, jet fuel will cost Rs 65,884.34 per kl from today against Rs 63,002.45 per kl previously.
Jet fuel constitutes over 40 percent of an airline’s operating costs and the two consecutive increase in prices have wiped away half of the gains the cash-strapped airlines would have made from reductions.
No immediate comments were available from the airlines on the impact of the price hike on passenger fares.
The three fuel retailers — IOC, Hindustan Petroleum and Bharat Petroleum — revise jet fuel prices on the 1st and 16th of every month, based on the average international prices in the preceding fortnight.