Oil cos increase ATF rates by 3.2%

Government owned oil companies have increased aviation turbine fuel (ATF) price by 3.2 per cent in line with the rising global prices. Price of ATF or jet fuel, in Delhi will be raised by Rs 2,039.24 per kl, or 3.25 per cent, to Rs 64,596.36 with effect from midnight, Indian Oil Corporation, the nation's largest retailer, said. ATF prices are market linked unlike prices of diesel, kerosene and domestic cooking gas. The rise comes after two consequent reductions in rates. In Mumbai, ATF will cost Rs 65,636.74 per kl from tomorrow, as against the current rate of Rs 63,499 per kl. ATF constitutes about 40 per cent of an airline's operating cost and the hike in prices will add to the burden of the cash-strapped airlines.