Faced by stiff international rates of oil, major oil companies hiked the rates of aviation turbine fuel (ATF) on March 31st. The three fuel retailers - IOC, HPCL and BPCL have jacked up rates by nearly 3%, the third hike in a month.
As a result the price of jet fuel, in Delhi will be Rs 67,800.30 per kl. In Mumbai, jet fuel will cost Rs 68,806.82 per kl, against the current rate of Rs 66,989.74 per kl. Oil companies typically revise the rates on the 1st and 16th of every month. For the month of March, ATF rates were increased by 3.2% on March 1 and by Rs 1,298.88 per kl from March 16. Another revision came on 31st March.
Jet fuel constitutes over 40% of an airline's operating cost and the hike in prices will add to the burden of the cash-strapped airlines. Whether this will be passed on to the passengers is yet to be seen.
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