After a brief lull, state-owned oil firms today hiked jet fuel, or Aviation Turbine Fuel (ATF), prices by a steep 2.7%, in line with firming rates in international markets.
The ATF price in Delhi has been hiked by Rs 1,520 per kilolitre (kl), or 2.69%, to Rs 57,844 per kl with effect from midnight tonight, an official of Indian Oil Corporation, the nation's largest fuel retailer, said.
Prices of jet fuel, which accounts for 40% of an airlines' operating cost, had softened this month. ATF rates were on July 1 cut by over 2.75% and only marginally raised by Rs 78 per kl from July 16.
ATF in Mumbai, home to the nation's busiest airport, will cost Rs 1,597 per kl more at Rs 58,628 per kl from tomorrow, as against the current price of Rs 57,031.66 per kl.
No comment could be immediately obtained from airlines on the impact of the price reduction on passenger fares.
ATF prices vary from airport to airport, depending on the local sales tax or VAT.
IOC and its sister public sector retailers, Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL), revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.