ATF prices hiked; airfares may go up

State-run oil companies on Wednesday raised prices of aviation turbine fuel, or ATF, for the third time in a month, this time by about 6.7 per cent, in step with international rates, which are firming up.

IndianOil, Bharat Petroleum and Hindustan Petroleum had on April 1 raised aviation turbine fuel prices by 10 per cent after a marginal Rs 158 per kl increase two weeks prior to that.

"ATF in Delhi will cost Rs 31,926 per kl from tomorrow (Thursday) as against Rs 29,925.97 per kl (now)," an IOC official said.

On March 16, jet fuel rates were raised by Rs 168.85 per kl and by Rs 2,651.02 per kl on April 1. The cumulative increase in the past three fortnights works out to 17.8 per cent.

"The prices have been raised as international rates have been on the rise since second week of March," he said.

In Mumbai, home to the nation's busiest airport, ATF rates were raised to Rs 32,855 per kl from Rs 30,784.81 per kl.

The increase in jet fuel prices announced today varied from airport to airport depending on local taxes and levies and on average worked out to be Rs 2,066 per kl.

Prior to these increases, the public sector oil firms had reduced jet fuel prices 11 times since September last year. In between, the oil firms had raised ATF prices by 3.3 per cent on January 16.

ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August on international crude prices touching historic high of $147 a barrel. But subsequently they had fallen, slashed every month till October and twice a month from November.

Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum revise ATF rates on the 1st and 16th of every month based on the average international jet fuel rates in the preceding fortnight.