Oil marketing companies hike jet fuel prices by 4.5 per cent

State-run oil marketing companies in the country have announced a 4.5 per cent increase in the prices of aircraft turbine fuel (ATF), or jet fuel, following a firming up of prices of crude oil in the international market.

This is the second increase in jet fuel prices announced by oil marketing companies in a month. OMCs had increased the prices of jet fuel by 1.7 per cent (or Rs1,039.1 per kl) effective 16 July.

Prices of jet fuel in Delhi will go up by Rs2,797.41 per kilolitre to Rs65,005.59, Indian Oil Corporation said in a web site release.

In Mumbai, jet fuel will cost Rs65,884.34 per kl from today against Rs63,002.45 per kl previously.

OMCS had been steadily reducing jet fuel prices for the six fortnights that ended 1 July, including a steep 5 per cent (Rs3,260 per kl) cut effected on 16 June and a 2 per cent (Rs1,241 per kl) reduction in prices on 1 July.

Jet fuel, which had hit an all-time high of Rs71,028.26 per kl in August 2008, shortly after international oil rates touched a record $147 per barrel, had fallen to an eight-month low of Rs61,169.08 per kl in early July.