 "Jet fuel prices raised by 8.2%")
State oil marketing companies hiked the price of jet fuel by 8.2 per cent, the first such increase since last July.
Price of aviation turbine fuel (domestic) in Delhi was increased to Rs 50,363 per kilolitre from Rs 46,513 per kilolitre. The price revision came into effect from Saturday midnight.
In February the jet fuel price was slashed 11.3 per cent. In January, jet fuel price was reduced 12.5 per cent and between October and December last year, prices declined 11 per cent. Jet fuel price came down to factor decline in crude oil price. Fuel costs account for about 40 per cent of an airline’s operating expenses. Domestic airlines pay more for fuel than their regional peers, owing to state and central levies.
For airlines, hit hard by high fuel costs for much of 2013 and the first part of last year, the drop in jet fuel prices will mean lower operating costs and improved profitability.
While a few foreign airlines, including AirAsia, Singapore Airlines and Qantas, have reduced or abolished fuel surcharges, Indian carriers have not taken a call to reduce fares.
Credit rating firm CRISIL expects Indian carriers to post an operating profit of Rs 8,100 crore in 2015-16 due to lower fuel price and growth in demand. However, Air India, Jet Airways and SpiceJet aren’t expected to report net profits, as they are in need of fund infusion, CRISIL said last month.
Price of aviation turbine fuel (domestic) in Delhi was increased to Rs 50,363 per kilolitre from Rs 46,513 per kilolitre. The price revision came into effect from Saturday midnight.
In February the jet fuel price was slashed 11.3 per cent. In January, jet fuel price was reduced 12.5 per cent and between October and December last year, prices declined 11 per cent. Jet fuel price came down to factor decline in crude oil price. Fuel costs account for about 40 per cent of an airline’s operating expenses. Domestic airlines pay more for fuel than their regional peers, owing to state and central levies.
For airlines, hit hard by high fuel costs for much of 2013 and the first part of last year, the drop in jet fuel prices will mean lower operating costs and improved profitability.
While a few foreign airlines, including AirAsia, Singapore Airlines and Qantas, have reduced or abolished fuel surcharges, Indian carriers have not taken a call to reduce fares.
Credit rating firm CRISIL expects Indian carriers to post an operating profit of Rs 8,100 crore in 2015-16 due to lower fuel price and growth in demand. However, Air India, Jet Airways and SpiceJet aren’t expected to report net profits, as they are in need of fund infusion, CRISIL said last month.
The price of non-subsidised LPG was last cut on February 1 by Rs 103.5 per 14.2-kg cylinder.
In the seven monthly reductions, non-domestic LPG rates had been slashed by Rs 317.50 per cylinder, bringing the price to a three-year low.