Oil PSUs hike jet fuel price

NEW DELHI: State-owned oil firms on Friday hiked jet fuel or ATF price by a marginal Rs 78 per kilolitre with effect from midnight tonight.

Aviation Turbine Fuel (ATF) in Delhi will cost Rs 56,324.79 per kl, an increase of Rs 77.93 per litre or 0.13 per cent, from Rs 56,246.86 per kl, an official of the Indian Oil Corp, the nation's largest fuel retailer said.

The marginal increase in jet fuel rates come on back of a 2.75 per cent reduction in price, effective from July 1.

ATF in Mumbai, home to the nation's busiest airport, will cost Rs 57,031.66 per kl from tomorrow as against Rs 56,964.01 per kl current price.

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

Fuel cost accounts for 40 per cent of the airlines' operating cost and rates vary from airport to airport depending upon the local sales tax.

IOC and its sister public sector retailers Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL) revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.