Jet Fuel Prices Hiked 8.1% To Their Highest This Year
Aviation turbine fuel price was hiked on Friday by a steep 8.1 percent to its costliest level this year as international oil prices rose, state-owned oil firms said.
The price of jet fuel was hiked by Rs 4,734.15 per kilolitre, or 8.15 percent, to Rs 62,795.12 per kilolitre in the national capital, according to price notification issued by state-owned oil firms. This is the first increase in prices in four months which has pushed rates to their highest level this year.
ATF or jet fuel prices are revised on the first day of every month based on the average international rate for benchmark fuel and foreign exchange rate in the preceding month.
Prices were unchanged at the last revision on Feb. 1. Prior to that, rates were cut by a record 14.7 percent in January and by 10.9 percent in December.
The two consecutive price reduction had brought ATF rates to their lowest levels in a year and had provided much-needed relief to cash-strapped airlines. But the latest round of price hike would put pressure on margins of airlines.
ATF, however, continues to be cheaper than both petrol and diesel in most parts of the country and is less expensive than even non-PDS kerosene.
A litre of petrol costs Rs 71.81 in Delhi as compared to Rs 62.79 per litre price for ATF. A litre of diesel, which is mostly used as fuel in trucks and buses, comes for Rs 67.12.
Continuing its upward march, petrol price on Friday was raised by 8 paise a litre and diesel rate was hiked by 12 paise. Petrol now costs Rs 71.81 a litre in Delhi and diesel is priced at Rs 67.12.
Rates have been on the rise for the last two weeks and cumulatively prices have risen by Rs 1.48 per litre in case of petrol and Rs 1.31 a litre for diesel.