Jet fuel cost for international airlines up 5% in second straight monthly hike

The price of Aviation Turbine Fuel (ATF), or jet fuel, for international airlines was increased by 5 per cent on Friday, marking the second straight monthly rise as oil companies pass on the global surge in energy prices in a calibrated manner, reported PTI.

There is no change in the ATF price for domestic airlines.

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ATF prices have been increased by USD 76.55 per kilolitre, or 5.33 per cent, to USD 1511.86 per kl in Delhi, home to India's busiest airport, PTI reported citing state-owned oil firms.

This follows the doubling of rates on April 1. On that day, rates for domestic airlines were hiked by 25 per cent to Rs 104,927.18 per kl.

Jet fuel prices were deregulated more than two decades ago, and since then, the rates have been aligned with benchmark international prices, as per a written understanding with the airlines.

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However, as per the report, industry sources said the sharp spike in global energy prices triggered by the West Asia crisis has forced a steep upward adjustment in ATF rates, prompting the government and state-owned oil companies to adopt a calibrated pricing approach.

Under this framework, foreign airlines and other international carriers are being charged market-linked rates, while prices for domestic airlines have been moderated to limit the immediate cost impact on local operators.

With inputs from agencies