Shares of two aviation companies dropped by 1.63% to 2.23% at 12:55 IST on BSE after the public sector oil marketing companies increased jet fuel prices.
The jet fuel prices were revised by the public sector oil marketing companies (PSU OMCs) after market hours yesterday, 31 May 2016.Meanwhile, the S&P BSE Sensex was up 82.94 points or 0.29% at 26,745.29.
InterGlobe Aviation (down 2.23%) and Jet Airways (India) (down 1.63%) declined. SpiceJet rose 0.66%.
Indian Oil Corporation yesterday, 31 May 2016 increased jet fuel prices by 9.22% to Rs 46,729.48 per kilolitre in Delhi with the corresponding revision in prices in other states depending on state levies. The revised jet fuel prices took effect from today, 1 June 2016.
Jet fuel constitutes over 40% of an airline's operating costs. Prices of jet fuel are directly linked to crude oil prices. PSU OMCs review jet fuel prices on the last day of the month based on the average imported oil price in the preceding fortnight.
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