OMCs hike jet fuel by 3.2% after two rounds of reduction

Posted By: Religare
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OMCs hike jet fuel by 3.2%
The hike in the international oil rates has once again forced the state oil companies to raise the jet fuel prices. The oil marketing companies (OMCs) have hiked the fuel prices by 3.2 per cent, increasing further pressure on the crash strapped aviation industry.

The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs 2,039.24 per kilolitre (kl), or 3.25%, to Rs 64,596.36 per kl with effect from midnight tonight, said Indian Oil Corp (IOC).

In Mumbai, ATF will cost Rs 65,636.74 per kl from tomorrow, as against the current rate of Rs 63,499 per kl.

The increase in the jet fuel will further exert pressure on the airlines, already grappling with high debts and mounting losses.

Meanwhile, the Jet fuel constitutes about 40 per cent of an airline's operating cost and the hike in prices will add to the burden of the cash-strapped airlines.

The hike has come after two rounds of reduction in rates on February 1 and 16. The jet fuel prices are revised on 1st and 16th of every month based on the average international price in the preceding fortnight.

Read more about: omc, debt
Story first published: Thursday, March 1, 2012, 13:30 [IST]
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