New Delhi, Feb 29: State-owned oil companies today hiked jet fuel price by 3.2 per cent on the back of firming up of international oil rates.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs 2,'.24 per kilolitre (kl), or 3.25 per cent, to Rs 64,596.36 per kl with effect from midnight tonight, Indian Oil Corp, the nation's largest retailer, said.
The hike comes after two rounds of reduction in rates effected from February 1 and 16.
In Mumbai, ATF will cost Rs 65,636.74 per kl from tomorrow, as against the current rate of Rs 63,499 per kl.
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.
No immediate comment was available from airlines on the impact of the price increase on passenger fares.
The three fuel retailers revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.