Aviation fuel prices up by another 4.35 per cent
01 Jul 2008
New Delhi: Indian oil marketing companies have raised prices of aviation turbine fuel (ATF) by as much as 7 per cent at some places and an average of 4.35 per cent at others putting domestic carriers, and the aviation industry at large, under increasing pressure.
The price rise also negates the cut back in prices effected on 5 June after the government reduced customs duty on ATF from 10 per cent to 5 per cent. This had resulted in ATF prices going down by around 4.33 per cent.
Though the airline industry is yet to respond with matching hikes, industry sources estimate that prices might increase by Rs150 for short haul routes, and Rs300 for long haul routes.
ATF prices went up by 7.04 per cent in Kolkata and by around 4.35 per cent in Delhi, Mumbai and Chennai.
A look at the increases at various centres indicates that prices may have gone back to their 1 June level. In such a case it is possible that carriers may refrain from hiking fares. They are already seeing passengers defecting to rail travel in preference to air.
