Jet fuel under crude curse

New Delhi: Air travel can turn even costlier with the price of crude touching $142 and jet fuel $160 a barrel.
Officials of airline companies said state-run oil companies had sounded them out for a Rs 2,000-2,500 per kilolitre (kl) increase in jet fuel price, which may come about next week.
Airlines, which had earlier this month raised fares after a huge increase in jet fuel prices, are likely to revise upwards their fuel surcharge, which they charge passengers over and above ticket price and tax.
The three largest airlines — Air India, Jet Airways and Kingfisher Airlines — had last week increased their base fares for up to 750 km by Rs 1000, between 750 km and 1000 km by Rs 2,250 and beyond 1000 km by Rs 3,000. Low cost airlines such as SpiceJet and GoAir increased their fares at that time by about Rs 350 and Rs 500 in two slabs. Ticket prices have risen by nearly 40 per cent over the last six months, and airlines are expected to end this fiscal year with losses of about Rs 8,000 crore.
The state-run oil marketing companies – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation– had increased jet fuel prices by Rs 10,839-12,375 per kl on June 1. Prices were, however, lowered by approximately Rs 3,000 per kl after the government reduced the customs duty. Prices have almost doubled in the last one year.
27/06/08 The Telegraph

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Jun 2008