Jet fuel prices go up by 1.6%

State-run oil firms today increased jet fuel prices marginally by 1.6 per cent on the back of rising international oil rates. Aviation turbine fuel (ATF) rates in Delhi were increased by Rs 585 per kilolitre to Rs 36,923 per kl, effective midnight tonight, an official of Indian Oil Corporation (IOC) said.

The increase follows a sharp 5.7 per cent cut in jet fuel prices two weeks ago. Indian Oil, Bharat Petroleum and Hindustan Petroleum had in the past two months raised ATF rates four times on firming international oil prices.

Jet fuel rates were Rs 31,614.51 per kl on May 1 and in four turns they were raised to Rs 38,557.56 per kl by July 1. The rate was lowered to Rs 36,338 per kl on July 16.

“International rates have firmed up since then,” the IOC official said. In Mumbai, home to the country’s busiest airport, the rate will be increased to Rs 38,098 per kl from Rs 37,475 per kl. The increase in ATF price, which constitutes 40 per cent of an airline’s operating cost, will add to the margin pressures of the cash-strapped domestic carriers.

Jet fuel in Kolkata will be dearer by Rs 649 per kl at Rs 45,060, while in Chennai the price has been increased to Rs 40,789 per kl from Rs 40,164 per kl.