Oil PSUs hike jet fuel prices by 4.5%

NEW DELHI: State-run oil marketing companies on Saturday increased jetfuel price by about 4.5% on account of rising global crude price. The new price would come into effect from Sunday.

Aviation Turbine Fuel (ATF) rates in Delhi have been increased by Rs 1,663 per kilo litre to Rs 38,585 per kilo litre. In Mumbai, the rate has been increased to Rs 39,830 from Rs 38,098 per kilolitre previously, an IOCL official said.

The increase in the fuel price would increase the operating cost of the airline. This could force airlines to pass on the additional cost burden to air travellers.

���We are yet to hear officially from oilcos on the rise in ATF price. We will evaluate the impact of increased jetfuel price before commenting on it,��� a Jet Airways spokesperson said.

Jetfuel contributes 40-45% to the operating cost of an airline. According to an estimate an increase of Rs 1,000 per kilo litre in jetfuel price leads to an additional fuel bill of Rs 300 crore on airline industry.