Jet fuel price hiked by 3.2 percent

August 16th, 2012 - 4:29 pm ICT by IANS  

New Delhi, August 16 (IANS) Jet fuel or aviation turbine fuel (ATF) price was hiked Thursday by over 3.2 percent, according to the Indian Oil Corporation (IOC).

Jet fuel constitutes over 40 per cent of an airline’s operating costs and the price hike will put fresh burden on the cash-strapped airlines.

The third such rate hike since July, it comes after the steep 4.5 percent increase in rates made on August 1, offsetting the reduction in prices effected in May and June.

ATF price in Delhi was hiked by Rs.2,130.17 per kilolitre (kl), or 3.27 percent, to Rs.67,135.76 per kl.

According to IOC, jet fuel in Mumbai will cost Rs.68,103.26 per kl from Thursday as against Rs.65,884.34 per kl earlier.

The three oil marketing companies - IOC, Hindustan Petroleum and Bharat Petroleum - revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.

Jet fuel rates were raised July 16 by 1.7 per cent or Rs.1,039.1 per kl, followed by a Rs.2,797.41 per kl increase in price on August 1.

The increases have snapped a six fortnight trend of reduction in rates, including a steep 5 percent cut effected from June 16, and about 2 percent 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 eight-month low of Rs.61,169.08 per kl in early July.

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