Oil cos hike ATF price by 2.5%

After two consecutive price cuts, state-owned oil companies today hiked jet fuel, or Aviation Turbine Fuel (ATF), price by 2.5% in line with firming of international oil rates.

ATF price at Delhi's T3 airport was hiked by Rs 1,429 per kilolitre (kl), or 2.5%, to Rs 57,689 per kl with effect from midnight tonight, said an official of Indian Oil, the nation's largest fuel retailer.

Indian Oil Corporation (IOC) and its sister retailer, Hindustan Petroleum Corporation and Bharat Petroleum Corporation had in two rate cuts on August 16 and September 1 lowered jet fuel price by Rs 1,585 per kl.

Today's hike has almost wiped away the reductions.

ATF in Mumbai, home to the nation's busiest airport, will cost Rs 1,475 per kl more at Rs 58,452 per kl from tomorrow as against the old price of Rs 56,978 per kl.

Jet fuel makes up for 40% of an airlines' operating cost.

No comment could be immediately obtained from airlines on the impact of the price hike on passenger fares.

ATF prices vary from airport to airport, depending on the local sales tax or VAT.

The three fuel retailers revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.