New Delhi, Apr 1 (UNI) With spiralling global crude prices, the public sector oil companies have raised aviation turbine fuel prices (ATF) by over 13 per cent.
ATF price in Delhi has been raised to Rs 53,309.30 per kilolitre from Rs 47,048.86 per kilolitre, while in Mumbai, the price rose Rs 6,536.35 a kilolitre to touch Rs 55,191.58 per kilolitre.
The state-run firms revise ATF prices on the first of every month.
For foreign airlines, which do not pay sales tax, ATF price in Delhi has been raised to 1,023.40 dollars per kilolitre from 911.76 dollars a kilolitre.
Reports say that air fares might go up as a result of the ATF price hike. The fuel surcharge is likely to go up from Rs 1,650 per ticket now to about Rs 2,000.
Domestic airlines had last increased fuel surcharge in December, after which oil prices had started softening. Though oil companies reduced ATF prices in January and February there was no relief for passengers as airlines did not cut the surcharge.
However, with oil prices increasing significantly in the past one month, and the Indian crude oil basket breaching the 100 dollars per barrel mark, an increase in the air fare is expected.
The minister for civil aviation Praful Patel says has been asking state governments to cut sales tax on aviation fuel. Airlines too have been lobbying for a cut in taxes, as aviation fuel in India now costs about 70 per cent more than in Singapore or Dubai.
ATF is one of the few products the oil companies make profits on, since prices are passed on every month to the airlines. They lose money on the bulk of other petroleum products like petrol, diesel, kerosene and LPG.
UNI SR MP HS1512