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ATF prices hiked for second time in a month

With firming of oil prices in the international market, jet fuel or aviation turbine fuel (ATF) rates were on Wednesday hiked by a steep 4.5 per cent, the second increase in a month.

The price of ATF, or jet fuel, in Delhi was hiked by Rs 2,797.41 per kilolitre (kl), or 4.5 per cent, to Rs 65,005.59, according to Indian Oil Corp, the nation's largest oil firm.

The hike comes on back of a 1.7 per cent or Rs 1,039.1 per kl hike in rates effected from July 16.

The twin increases snapped a six fortnight trend of reduction in rates, including a steep 5 per cent (Rs 3,260 per kl) cut effected from June 16 and about 2 per cent (Rs 1,241 per kl) fall in prices from July 1.

Jet fuel, which had hit an all-time high peak of Rs 71,028.26 per kl in August 2008, shortly after international oil rates touched a record $147 per barrel, had fallen to eight-month low of Rs 61,169.08 per kl in early July.

In Mumbai, jet fuel will cost Rs 65,884.34 per kl from today as against Rs Rs 63,002.45 per kl previously. Jet fuel constitutes over 40 per cent of an airline's operating costs and the two consecutive increase in prices have wiped away half of the gains the cash-strapped airlines would have made from reductions.
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