Oil firms hike jet fuel price by over 6 percent

January 15th, 2010 - 10:01 pm ICT by IANS  

New Delhi, Jan 15 (IANS) State-owned oil companies Friday hiked jet fuel prices by over 6 percent after international crude prices rose to $82-84 per barrel this month.
Jet fuel in Delhi will now cost Rs.41,216.43 per kilolitre, an increase of Rs.2,519.83, while in Mumbai, it will be priced at Rs.42,535.61, an increase of Rs.2,624.82.

Jet fuel, which constitutes 35 to 40 percent of a carrier’s operational costs, had reached Rs.71,028.26 per kilolitre in August 2008 when international crude oil prices touched $147 per barrel, or 159 litres.

The price of aviation fuel is fixed on the basis of global crude rates in the previous fortnight.

Airlines which have increased fares following steep hike in aviation fuel prices in the past, are likely to take a decision in this regard, an industry official said.

A fare hike is also likely with the aviation sector recovering partially with passenger load gradually picking up.

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