Oil firms increase jet fuel price by two percent

November 15th, 2011 - 11:16 pm ICT by IANS  

New Delhi, Nov 15 (IANS) State-owned oil marketing companies (OMCs) Tuesday increased the prices of aviation turbine fuel (ATF) by two percent, effective from Nov 16.

The ATF at Delhi’s IGI airport goes up by 1.95 percent at Rs.62,310.33 per kilo litre from Rs.61,115.36.

The recent hike is the second such increase in November. The OMCs had increased jet fuel prices by 3.8 percent on Nov 1.

The latest hike is expected to further burden the industry, which has seen many airlines reporting losses owing to the high cost of jet fuel.

The ATF cost accounts for nearly 50 percent of the operating cost of any airline. Jet fuel prices also vary from state to state which levy sales tax on the ATF in the region of 22 to 23 percent.

The OMCs revise ATF prices on every 1st and 16th of the month based on the average international crude oil price during the fortnight.

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