Jet fuel prices may soar 15% from April 1

Mumbai: Come Wednesday, aviation turbine fuel (ATF) prices will go up by at least 15%. Two independent sources in private carriers told ET that
they have got feelers from oil marketing companies about the impending rise in ATF prices.
The rise will confirm the trend of increasing ATF prices which, after an incessant fall since September, rose marginally on March 15. “However, the increase will be steep this time around,” said an official with a private airline.
ATF rates, which vary in different airports depending on local taxes and levies, are currently at Rs 27,861 per kl in Mumbai. ATF accounts for 50% of an airline’s operational expenditure.
Domestic airlines, which are set to incur a combined $1.5-billion loss this fiscal, may increase fares post-ATF price hike.
Oil companies such as Indian Oil, Hindustan Petroleum and Bharat Petroleum revise ATF rates twice a month based on the average international jet fuel rates in the preceding fortnight.
ATF spot prices have soared by a whopping 23% in Singapore in the past week. It soared by 19% at the US Gulf Coast, 17% in New York and Los Angeles and 15% in Amsterdam. Crude oil prices touched $51 a barrel on Monday rising steadily from $35 in February. The prices had peaked to Rs 71,028.26 per kl in Delhi in August on international crude prices touching historic high of $147 a barrel.
31/03/09 Mithun Roy/Economic Times

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Categories: Indian Aviation- In General Mar 2009