Oil retailers raise ATF price by 3.4%

For the 10th fortnight in a row, state-owned oil firms today raised jet fuel price by 3.4% in line with spike in crude oil prices.

Aviation turbine fuel (ATF) rates in Delhi have been hiked by Rs 1,870 per kilolitre, or 3.4%, to Rs 54,933 per kl with effect from midnight tonight, an official of Indian Oil Corp, the nation''s largest fuel retailer, said.

The hike comes on back of two massive hikes effected on February 1 and 16.
This is the 10th straight increase in jet fuel prices since October 2010, when international crude oil prices started soaring.

The ATF price in Delhi in October 1 was Rs 40,728.52 per kl. The rates were increased by Rs 14,204.48 per kl or 34.87% in 10 tranches since then, in tandem with surge in global oil prices.

Jet fuel will cost Rs 55,500 per kl in Mumbai, home to the nation''s busiest airport, from tomorrow, as against Rs 53,538 per kl currently.

No comment could be immediately obtained from airline companies on the impact of the latest price hike on passenger fares.

Fuel cost accounts for 40% of the airlines'' operating cost.

Indian Oil Corp and sister public sector retailers Bharat Petroleum and Hindustan Petroleum revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.