New Delhi, Jul 31: Jet fuel (ATF) prices were today hiked by a steep 6.3 per cent, the third consecutive increase since June, as a falling rupee made imports costlier.
Aviation Turbine Fuel, or ATF, price at Delhi was hiked by Rs 4,169.4 per kilolitre (kl), or 6.3 per cent, to Rs 70,203.15 per kl with effect from midnight tonight, according to Indian Oil Corp, the nation's largest fuel retailer.
The increase comes on back of a steep 5.8 per cent hike in jet fuel rates on July 1. The Rs 3,617.84 per kl hike on that day came on back of June 1 increase when prices climbed to Rs 62,416.16 per kl from Rs 62,649.95 previously.
The hikes follow two steep reduction in rates - by 5.5 per cent (Rs 3884.98 per kl) on April 1 and 5.3 per cent or Rs 3,545.94 per kl from May 1.
ATF price in March had touched Rs 70,080.87 per kl in Delhi.
Officials said the current increase follows continuing fall in rupee against the US dollar, which made import of raw material (crude oil) costlier.
In Mumbai, jet fuel will cost Rs 72,477.50 per kl from tomorrow as against Rs 68,147.9 per kl currently.
Rates at different airports vary because of difference in local sales tax or VAT.
Kolkata would see price hike of Rs 4,323.1 to Rs 80317.03 per kl, while it will cost Rs 76,312.90 in Chennai as against Rs 71,851.42 per kl currently.
Jet fuel constitutes over 40 per cent of an airline's operating costs. No immediate comments were available from the airlines on the impact of the price hike on passenger fares.
The three fuel retailers—IOC, Hindustan Petroleum and Bharat Petroleum—revise jet fuel prices on the 1st of every month, based on the average international price in the preceding month.