State-run oil firms today raised jet fuel price by a massive 4%, the ninth straight increase in rates since October.
Aviation Turbine Fuel (ATF) rates in Delhi have been hiked by Rs 2,104 per kilolitre, or 4.12%, to Rs 53,538 per kl with effect from midnight tonight, an official of Indian Oil Corporation (IOC), the nation's largest fuel retailer, said.
The hike, the second biggest increase in a year, comes on the back of another 4.5% jump in rates effected from February 1.
"The hike has been necessitated because of spurt in international oil rates," the official said.
This is the ninth straight increase in jet fuel prices since October 2010, when international crude oil prices started soaring.
The ATF price in Delhi in October 1 was Rs 40,728.52 per kl. The rates were increased by Rs 12,334.48 per kl or 30.28% in nine tranches since then, in tandem with surge in global oil prices.
More From This Section
Jet fuel will cost Rs 53,538 per kl in Mumbai, home to the nation's busiest airport, from tomorrow, as against Rs 51,332.82 per kl currently.
No comment could be immediately obtained from airline companies on the impact of the latest price hike on passenger fares.
Fuel cost accounts for 40% of the airlines' operating cost.
IOC and sister public sector retailers Bharat Petroleum Corporation and Hindustan Petroleum Corporation revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.