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Jet fuel price hiked by 3.8%

February 28, 2013 21:19 IST

Jet fuel prices were on Thursday hiked by 3.8 per cent, the second increase in rates in as many months.

Aviation Turbine Fuel, or ATF, price at T3 terminal in Delhi was hiked by Rs 2,519.83 per kilolitre (kl), or 3.8 per cent, to Rs 70,080.87 per kl from midnight tonight, according to Indian Oil Corp, the nation's largest fuel retailer.

The increase comes on back of a 2 per cent or Rs 1,324.84 per kl hike in rates effected from February 1 In Mumbai, jet fuel will cost Rs 72,451.79 per kl as against Rs 69,826.98 per kl currently.

Rates at different airports vary because of differential in local sales tax or VAT.

Kolkata would see price increase of Rs 2,651.87 to Rs 79238.07 per kl, while it will cost Rs 76,239.44 in Chennai as against Rs 73,516.67 currently.

Jet fuel constitutes over 40 per cent of an airline's operating costs and the increase in prices will add to burden of the cash-strapped airlines.

No immediate comments were available from the airlines on the impact of the price increase on passenger fares.

The three fuel retailers -- IOC, Hindustan Petroleum and Bharat Petroleum -- revise jet fuel prices on the 1st of every month, based on the average international price in the preceding month.

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