Jet fuel price hiked by 4.5 percent

August 1st, 2012 - 5:50 pm ICT by IANS  

New Delhi, August 1 (IANS) Oil marketing companies (OMC) Wednesday hiked aviation turbine fuel (ATF) or jet fuel price by 4.5 percent for the second time in a month.

According to Indian Oil Corp (IOC), the largest oil marketing firm in the country, ATF price in Delhi was increased by Rs.2,797.41 per kilolitre (kl) to Rs.65,005.59.

In Mumbai, it will cost Rs.65,884.34 per kl, up from the earlier Rs.63,002.45 per kl.

The earlier hike July 16 was of 1.6 percent, costing an additional Rs.1,039 a kl.

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

There was a steep 5 percent cut effected on June 16 followed by a two percent reduction on July 1. Jet fuel had fallen to an eight-month low of Rs.61,169.08 per kl in early July.

Jet fuel forms around 40 percent of operating costs for an airline. The latest increases have neutralised 50 percent of airlines’ gains accruing from earlier reductions.

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