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Jet fuel (ATF) prices have been hiked by 6.9 per cent to a life-time high of Rs 75,031 per kilolitre.
ATF prices had scaled a high of Rs 71,028.26 per kl in August 2008. But four consecutive increases since June that had been necessitated by falling rupee, has seen the fuel price break all the previous records.
Aviation turbine fuel prices at Delhi were hiked by Rs 4,827.94 per kl or 6.87 per cent to Rs 75,031.09 per kl, according to Indian Oil Corp, the nation’s largest fuel retailer. The increase is with effect from September 1.
The hike comes on the back of a steep hike on July 1 and August 1. ATF prices were increased by Rs 3,617.84 per kl or 5.8 per cent on July 1 and by another Rs 4,169.4 per kl or 6.3 per cent on August 1.
Prior to these, the rates had climbed to Rs 62,416.16 per kl on June 1 from Rs 62,649.95 previously.
The latest hike follows two steep reduction in rates — by 5.5 per cent (Rs 3884.98 per kl) on April 1 and 5.3 per cent or Rs 3,545.94 per kl from May 1. ATF prices in March had touched Rs 70,080.87 per kl in Delhi.
Officials said that the current increase follows a continuous fall in rupee value against the US dollar, which made import of raw material (crude oil) costlier.
In Mumbai, jet fuel costs Rs 77,632.43 per kl from yesterday against Rs 72,477.50 per kl previously.
Rates at different airports vary because of difference in local sales tax or VAT.
Jet fuel constitutes over 40 per cent of an airline’s operating costs. No immediate comments were available from the airlines on the impact of the price hike on passenger fares.
The three fuel retailers — IOC, Hindustan Petroleum and Bharat Petroleum — revise jet fuel prices on the 1st of every month, based on the average international price in the preceding month.
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