Following the diesel price hike by Rs 5.63 per litre, aviation turbine fuel (ATF), or jet fuel was raised by about 2% to Rs 73,711 per kilolitre on Sept 15 - the biggest ever hike in rates effected from beginning of this month. Further, according to Indian Oil Corporation (IOC), ATF at T3 terminal in Delhi has been increased by Rs 1,429/ kl, or 1.97% to Rs 73,711/ kl.
Since July, this is the fifth straight increase in rates, jet fuel adds up to over 40% of an airline's operating costs and the increase in prices will add to the burden of cash-strapped airlines. The prices were increased mainly on the back of firming international oil rates and dip in rupee value against the US dollar.
The three fuel retailers i.e. Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) normally modify their jet fuel prices on the 1st & 16th of every month, based on the average international price in the previous fortnight.