The Indian Oil Corporation Limited (IOC), the state-owned oil retailer has raised prices on ATF (aviation turbine fuels) on Friday. Rates have been hiked by 7 percent to Rs 70,028 per kilolitre in Delhi, Rs 74,599 per KL in Kolkata, Rs 69,603 per KL in Mumbai and Rs 70,751 per KL in Chennai. This is the biggest hike in terms of percentage in 17 months and the 11-straight month of rise in jet fuel prices.
Prices per kilolitre for international airlines have been raised by $30 in these cities.
Earlier this week, IndiGo Airlines had already introduced fuel surcharge on ticket prices due to rise in crude oil prices. In a statement, the airline said that its domestic passengers would be charged Rs 200 on routes shorter than 1,000 km and Rs 400 on those longer than 1,000 km as a surcharge, effective from May 29.
Other airlines will soon follow suit as fuel makes up for one-third of the operating costs for them. There has been a 30 percent increase in fuel costs compared to the same time last year.