State-owned oil retailers today raised the price of jet fuel, or ATF, marginally by Rs 104 per kilolitre, making it the sixth straight increase since March.
Aviation Turbine Fuel (ATF) rates in Delhi have been hiked by Rs 104, or 0.24 per cent, to Rs 42,556 per kilolitre with effect from midnight tonight, an official of Indian Oil Corp, the nation's largest oil firm, said.
Jet fuel constitutes roughly 40 per cent of the operating cost of an airline and today's increase in fuel rates would put a nominal, but extra burden on Indian carriers.
It was not immediately clear if airlines would pass on this burden to passengers.
ATF prices have been raised by 12 per cent in six installments since March 1. The jet fuel price in Delhi was Rs 37,982.22 per kl in February.
In Mumbai, the price of ATF was today raised by Rs 108 to Rs 43,932 per kl.
IOC and its sister PSU fuel retailers Hindustan Petroleum and Bharat Petroleum revise jet fuel prices on the first and the 16th of every month, based on the average global oil price in the previous fortnight.
Predicting tougher times ahead, Reliance Industries Chairman and Managing Director Mukesh Ambani yesterday stated that global crude oil prices may touch the $100 per barrel mark soon. Crude is currently trading below $75 per barrel.