 "Jet fuel price up 7.5% on rise in crude")
State oil marketing companies hiked jet fuel price 7.5% on the back of rise in crude oil prices. However airlines will not immediately revise the fares anticipating a fall in demand.
The price of jet fuel in Delhi was hiked to Rs 53,353 per kilolitre from Rs 49609. The revised price came into effect from Sunday midnight.
Aviation turbine fuel accounts for 30-40% of domestic airlines expenses. Domestic airlines pay more for fuel than their regional peers, owing to state and central levies.
The latest revision is the second big hike after March. In March , the oil companies had raised the jet fuel price by 8%, the first increase since last July. In May the jet fuel price was increased 0.5% while in April the price was cut by 2%.
Domestic airlines have been complaining that airlines have not secured entire pass through benefit of decline in crude oil prices. Crude prices fell by over 50% but jet fuel price was down only 27% between September-March 2015.