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Last Updated : May 02, 2018 09:36 AM IST | Source: Moneycontrol.com

Jet Airways, SpiceJet and IndiGo fall up to 1% after IOC hikes jet fuel prices by 6%

Effective May 1, IOC has decided to hike jet fuel (aviation turbine fuel) to Rs 65,340/KL, implying a hike of 6.5 percent against Rs 61,450/KL in the previous month.

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Shares of Jet Airways, SpiceJet and InterGlobe Aviation (IndiGo) were under pressure on Wednesday morning as investors were wary of hike in aviation fuel prices.

While Jet Airways fell 1 percent, SpiceJet and IndiGo declined between 1 and 1.5 percent, respectively.

Effective May 1, IOC has decided to hike jet fuel (aviation turbine fuel) to Rs 65,340/KL, implying a hike of 6.5 percent against Rs 61,450/KL in the previous month.

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Having said that, companies could be staring at a relatively better quarter due to the holiday season ahead. A recent report also indicated that jet fuel demand could soar as well.

According to a PTI report, average monthly demand for jet fuel could break through 700,000 tonnes this year, up from 2017's record 623,000 tonnes and from 566,000 tonnes in 2016, several industry analysts estimated.

That would be an annual growth rate of around 12 percent, comparable to what China achieved during its main boom years in the early 2000s.

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First Published on May 2, 2018 09:36 am
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