ATF prices up, fare hike to follow?

New Delhi: The government may have constituted a group of ministers to look into ways to lower aviation turbine fuel (ATF) tariff, but that did not come in the way of state-owned oil companies increasing jet fuel prices by a whopping 4.5%, citing firming international oil prices.
The current hike of ATF prices, the second in a month, is to the tune of Rs 1,662 per kilolitre in Delhi, Rs 1,732 in Mumbai, Rs 1,759 in Kolkata and Rs 1,816 in Chennai. The average increase is Rs 1,762 per kilolitre. On August 1, ATF price was raised by Rs 585 per kilolitre.
An AI spokesperson said the move would further compound problems of the industry, faced with low-capacity utilization because of the slowdown. A senior Jet Airways official said the hike was unexpected as the government was looking for ways to lower ATF prices.
16/08/09 Economic Times

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Categories: Indian Aviation- In General Aug 2009