Govt raises Jet fuel price by 5.8%
1 July 2013 10:42 PM GMT
Jet fuel (ATF) prices were on Sunday hiked by a steep 5.8 per cent, the second consecutive increase since June, as rupee depreciation made imports costlier.
Aviation Turbine Fuel, or ATF, price at Delhi was hiked by Rs 3,617.84 per kilolitre (kl), or 5.8 per cent, to Rs 66,034 per kl with effect from midnight of June 30, according to Indian Oil Corp, the nation's largest fuel retailer.
The increase comes on back of a marginal hike in rates on 1 June when prices climbed to Rs 62,416.16 per kl from Rs 62,649.95 previously.
The two hikes follow similar number of 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 1 May. ATF price in March had touched Rs 70,080.87 per kl in Delhi.
Officials said the current increase follows rupee depreciating to record lows of 60.70 to a US dollar, which made import of raw material (crude oil) costlier.
In Mumbai, jet fuel will cost Rs 68,148 per kl from Monday as against Rs 64,381.15 per kl currently.Rates at different airports vary because of differential in local sales tax or VAT.
Kolkata would see price hike of Rs 3,737 to Rs 75,994 per kl, while it will cost Rs 71,851 in Chennai as against Rs 67,926.43 per kl previously.
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.
Aviation Turbine Fuel, or ATF, price at Delhi was hiked by Rs 3,617.84 per kilolitre (kl), or 5.8 per cent, to Rs 66,034 per kl with effect from midnight of June 30, according to Indian Oil Corp, the nation's largest fuel retailer.
The increase comes on back of a marginal hike in rates on 1 June when prices climbed to Rs 62,416.16 per kl from Rs 62,649.95 previously.
The two hikes follow similar number of 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 1 May. ATF price in March had touched Rs 70,080.87 per kl in Delhi.
Officials said the current increase follows rupee depreciating to record lows of 60.70 to a US dollar, which made import of raw material (crude oil) costlier.
In Mumbai, jet fuel will cost Rs 68,148 per kl from Monday as against Rs 64,381.15 per kl currently.Rates at different airports vary because of differential in local sales tax or VAT.
Kolkata would see price hike of Rs 3,737 to Rs 75,994 per kl, while it will cost Rs 71,851 in Chennai as against Rs 67,926.43 per kl previously.
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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