Jet fuel prices increased by 12%

New Delhi: State-run oil firms today hiked jet fuel prices by over 12 per cent on firming international oil prices.
Indian Oil, Bharat Petroleum and Hindustan Petroleum raised aviation turbine fuel (ATF) price by Rs 3,949 to Rs 36,252 per kilolitre in Delhi effective midnight tonight, an IOC official said.
The rise in ATF prices, which constitute 40 per cent of airlines' operating cost, may further put pressure on cash-strapped domestic carriers. Reacting to ATF prices hike, private domestic air-carriers said that they would take a call on fare revision only after evaluating the impact of over 12 per cent hike in jet fuel prices by oil marketing firms. Air India said it would “wait and watch.” International crude oil prices have firmed to a seven-month high of $72 per barrel on hopes of demand revival in the USA.
The three state-owned retailers had from 1 June 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 16 May.
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. 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.
15/06/09 Press Trust of India/The Statesman

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Categories: Indian Aviation- In General Jun 2009