State-run oil companies like Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL), have raised Aviation Turbine Fuel (ATF), prices by 2.7 per cent after lowering the rates during the last fortnightly revision on July 16th.
While, ATF rates in Delhi have been increased by Rs 1,078 per kilolitre to Rs 41,177 per kilolitre, in Mumbai the price of ATF has been raised by Rs 1,123 to Rs 42,484 per kilolitre. ATF rates, which make up for about 40 per cent of the operating cost of an airline, have been cranked up on nine occasions since March. However, exceptions were made on two occasions--June 1 and on July 16--when the rates were cut. The increase follows a 3.3% hike in prices that oil firms had announced on July 16th.
Jet fuel in Delhi was priced at Rs 37,982.22 per kilolitre in the second half of February this year before international oil rates started firming up resulting in increase in domestic rates. The 3 state-run oil firms revise jet fuel prices on the first and the 16th of every month, based on the average global oil price in the previous fortnight.