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Rediff.com  » Business » Oil firms hike ATF price by 12%

Oil firms hike ATF price by 12%

June 15, 2009 18:46 IST

After two minor price increases, state-run oil firms on Monday hiked jet fuel or ATF rates by over 12 per cent on firming international oil prices.

Indian Oil, Bharat Petroleum and Hindustan Petroleum raised avitation turbine fuel price by Rs 3,949 to Rs 36,252 per kilolitre in Delhi effective Monday midnight, an IOC official said.

International crude oil prices have firmed to a seven-month high of $72 per barrel on hopes of demand revival in US.

The three state retailers had from June 1 raised jet fuel rates by an average of Rs 108 per kl, which came on the back of a 1.8 per cent hike in rates on May 16.

In Mumbai, home to the nation's busiest airport, the rate will go up from Rs 33,260.8 per kilolitre to Rs 37,367 per kilolitre.

The rise in ATF prices, which constitute 40 per cent of airlines' operating cost, may further put pressure on cash-strapped domestic carriers.

No comments from any of the leading airlines were immediately available on the latest price hike.

Jet fuel in Kolkata will be dearer at Rs 44,289 per kilolitre from Rs 40,230.05 per kilolitre, while in Chennai the price has been raised to Rs 40,024 per kilolitre from Rs 35,821.34 per kilolitre.

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