ATF price hiked by 5.5%

Aviation Turbine Fuel (ATF) price has been hiked by 5.5 per cent for the fifth month in a row. ATF in Delhi was increased by Rs 2,557.7 per kilolitre (kl), or 5.47 per cent, to Rs 49,287.18 per kl, the oil companies announced today. This is the fifth straight monthly increase in rates, the last being on June 1 when prices were hiked by a steep 9.2 per cent, or Rs 3,945.47, to Rs 46,729.48 per kl. In the five increases, ATF rates have increased by 25 per cent, or Rs 9,985.87, per kl since March. ATF rates vary at different airports because of differential local sales tax or value-added tax (VAT). Jet fuel constitutes over 40 per cent of an airline’s operating cost and the latest price increase will add to the financial burden of cash-strapped carriers. No immediate comment was available from airlines on the impact of the price increase on passenger fares.

Source: PTI