Marking a fourth straight rise since the month of July, Jet fuel or Aviation Turbine Fuel (ATF) prices are hiked by a steep 7.6 per cent or by Rs 5,146.16 per kilolitre (kl), the biggest hike ever that took ATF price to all-time high of Rs 72,282 per kilolitre, with effect from August 31 midnight. Previous high in ATF price of Rs 71,028.26 per kl was hit in August, 2008. In Mumbai, jet fuel will now cost Rs 72,830.64 per kl as against Rs 68,103.26 per kl at present.
This steep hike in price in absolute numbers comes on back of firming international oil rates and slide in rupee value against the US dollar. However, percentage wise it remains lower than the 12 per cent hike in rates effected from June 16, 2009 when prices were hiked by Rs 3,948.59 per kl to Rs 36,251.51 per kl.
Meanwhile, this hike adds to the burden of cash- strapped airlines. Jet fuel constitutes over 40 per cent of an airline's operating costs and the increase in prices definitely adds to fresh burden on the cash-strapped airlines.
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