New Delhi: After two minor price increases, state-run oil firms on Monday hiked jet fuel or ATF rates by over 12 per cent on firming international oil prices.
Indian Oil, Bharat Petroleum and Hindustan Petroleum raised avitation turbine fuel (ATF) price by Rs 3,949 to Rs 36,252 per kilolitre in Delhi effective Monday midnight, an IOC official said.
International crude oil prices have firmed to a seven-month high of $72 per barrel on hopes of demand revival in US.
The three state retailers had from June 1 raised jet fuel rates by an average of Rs 108 per kl, which came on the back of a 1.8 per cent hike in rates on May 16.
In Mumbai, home to the nation's busiest airport, the rate will go up from Rs 33,260.8 per kl to Rs 37,367 per kl.
The rise in ATF prices, which constitute 40 per cent of airlines' operating cost, may further put pressure on cash-strapped domestic carriers.
No comments from any of the leading airlines were immediately available on the latest price hike.
Jet fuel in Kolkata will be dearer at Rs 44,289 per kl from Rs 40,230.05 per kl, while in Chennai the price has been raised to Rs 40,024 per kl from Rs 35,821.34 per kl.
Monday's jet fuel price increase worked to an average of Rs 4,079 per kl as rates varied from airport to airport depending on local sales tax.
ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August last year on international crude prices touching a historic high of $147 a barrel. But subsequently the rates had come down, slashed every month till October and twice a month from November.
The three firms, which revise jet fuel rates every fortnight based on trends in international markets, had on April 16 increased ATF rates by about 6.7 per cent. This was followed by a marginal reduction in rates by one per cent on May 1, which had brought the rates in Delhi down to Rs 31,614.51 per kl.
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