State OMCs hike jet fuel price by 7.2% due to rupee depreciation

Firms have not included 5% Customs duty in the latest revision

State oil marketing companies (OMCs) have hiked aviation turbine fuel (ATF) price by 7.25 per cent in October. This is the third consecutive price revision.

Firms have not included 5 per cent Customs duty in the latest revision. A kilolitre of ATF is now priced at Rs 74,177 in Mumbai, highest in the past four years.

Indian Oil said the hike was due to an increase in ATF prices in the global market and falling rupee.

It said the Customs duty was not being passed on to the airlines. Domestic ATF pricing in India is based on import parity principles. Fuel accounts 24.2 per cent of an average airline’s cost structure. In India it is 34 per cent, making Indian carriers particularly sensitive in this area, International Air Transport Association said earlier.