PSU oil firms hike ATF prices by 3.5%

After two straight cuts, state-owned oil firms today raised aviation turbine fuel (ATF) price by 3.5 per cent.

Jet fuel or ATF rates in Delhi were raised by Rs 1,325 per kilolitre to Rs 39,307 per kl with effect from midnight tonight, an official of the Indian Oil Corporation, the nation's largest oil firm, said.

The hike comes on back of 5.5 per cent reduction on February 1 and 2.5 per cent cut on February 16.

Jet fuel constitutes roughly 40 per cent of the operating cost of an airline and today's increase in fuel rates would put extra burden on Indian carriers.

No immediate comments were available from airlines on the impact the latest hike would have on air fares. In Mumbai, the rates were raised by Rs 1,380 to Rs 40,547 per kl.

IOC and sister oil firms Hindustan Petroleum and Bharat Petroleum revise jet fuel prices on the first and the 16th of every month based on the average global oil price in the previous fortnight.