Air fuel price hiked 19 percent, airfares may rise

May 31st, 2008 - 10:37 pm ICT by admin  

Mumbai, May 31 (IANS) Domestic airfares are likely to shoot up again as the state-run oil companies decided to hike air turbine fuel (ATF) prices by around 19 percent from Saturday midnight. According to figures obtained from Indian Oil Corporation Limited (IOCL), ATF in Mumbai will cost Rs.71,759.06 per kilolitre, up from Rs.60,468.28. In New Delhi, ATF will cost Rs.69,227.08 against Rs.58,387.92.

With spiralling global oil prices, the airlines have hiked fuel surcharge five times during the past five months, passing on the additional financial burden to the passenger.

In May, they had raised the fuel surcharge on air tickets on short haul flights to Rs.1,950 and to Rs.2,350 on long haul flights, as the oil firms increased ATF prices.

However, the airlines have not yet taken a decision whether to pass on the latest hike to the consumer.

A spokesman for the UB group-promoted Kingfisher airlines told IANS Saturday evening: “We will study the impact of the just announced price hike in ATF and take a decision shortly.”

India’s largest private airline Jet Airways was yet to decide on a hike. “We have not taken any decision yet,” a spokesperson of Jet Airways told IANS.

Industry sources indicate a minimum hike of Rs.400-500 per ticket depending on the sector.

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