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| Oil cos raise ATF prices by 6% |
| Press Trust of India / New Delhi Jun 30, 2009, 15:22 IST |
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For the fourth time in two months, state-run oil firms today hiked jet fuel or aviation turbine fuel (ATF) price by more than 6 per cent on firming international oil prices.
Indian Oil, Bharat Petroleum and Hindustan Petroleum raised ATF price by Rs 2,306 to Rs 38,558 per kilolitre in Delhi effective midnight tonight, an IOC official said.
The hike comes on back of over 12 per cent hike on June 15. ATF price on that day were raised by Rs 3,949 to Rs 36,252 per kilolitre in Delhi.
International crude oil prices have firmed to a seven-month high of $72 per barrel on hopes of demand revival in US.
The three state-run retailers had from June 1 raised jet fuel rate by an average of Rs 108 per kl, which came on the back of a 1.8 per cent hike in rates on May 16.
In Mumbai, home to the nation's busiest airport, the rate will go up from Rs 37,367 per kl to Rs 39,789 per kl. The rise in ATF price, which constitutes 40 per cent of airlines' operating cost, may further put pressure on cash-strapped domestic carriers.
No comments from any of the leading airlines were immediately available on the latest price hike. Jet fuel in Kolkata will be dearer at Rs 46,711 per kl from Rs 44,289 per kl, while in Chennai the price has been raised by Rs 2,500 per kl to Rs 42,524 per kl.
ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August last year on international crude prices touching a historic high of $147 a barrel. But subsequently the rates had come down, slashed every month till October and twice a month from November.
The three firms, which revise jet fuel rate every fortnight based on trends in international markets, had on April 16 increased ATF rate by about 6.7 per cent. This was followed by a marginal reduction in rates by one per cent on May 1.
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