With rising this month to $82-$84 per barrel, the three public sector oil companies Indian Oil, Hindustan Petroleum and Bharat Petroleum today hiked the price of aviation turbine fuel (ATF) by 6.5 per cent in step with hardening international rates.
The price of the jet fuel in Delhi will now cost another Rs2,519.83 per kilolitre at Rs4,1216.43 per kl, while in Mumbai, the rates were increased to Rs42,535.61 from Rs39,910.79 per kl.
Since November 2009, the three oil marketing companiees have reduced ATF rates from Rs40,422.62 per kl on 16 November to Rs38,696.6 on 1 January 2010.
However, with international crude oil prices rising this month to $82-$84 per barrel, the oil marketers have finally raised their rates.
in August 2008 when international crude oil prices touched an all-time high of $147 per barrel, ATF rates had peaked to Rs71,028.26 per kl.
The three oil firms revise jet fuel prices on the first and the 16th day of every month based on the average global oil price in the previous fortnight.
Jet fuel constitutes roughly 40 per cent of the operating cost of an airline most of whom are making losses.