New Delhi, Jan 31 (PTI) State-owned oil firms today hikedjet fuel prices by a massive 4.5 per cent, the biggest hike inalmost a year, on the back of spiralling international oilprices.
Aviation Turbine Fuel (ATF) rates in Delhi have beenhiked by Rs 2,194.79 per kilolitre, or 4.5 per cent, to Rs50958.79 per kl with effect from midnight tonight, an officialof Indian Oil Corp (IOC), the nation''s largest fuel retailer,said.
This is the eighth straight increase in jet fuel pricessince October 2010, when international crude oil pricesstarted soaring.
Last time the oil companies had affected such a massivehike on January 16, 2010 when rates in Delhi were hiked by Rs2,519.83 per kl or 6.5 per cent.
The ATF price in Delhi on October 1 was Rs 40,728.52 perkl. The rates were increased by Rs 10,230.21 per kl or 25.1per cent in eight tranches since then, in tandem with a surgein global oil prices.
The basket of crude India buys has averaged USD 93.75 perbarrel in second half of January, as against December averageof USD 89.78 per barrel.
Jet fuel will cost Rs 51,332.82 per kl in Mumbai, home tothe nation''s busiest airport, from tomorrow, as against Rs49,046 per kl currently.
No comment could be immediately obtained from airlinecompanies on the impact of the latest price hike on passengerfares.
Fuel cost accounts for 40 per cent of the airlines''operating cost.
IOC and sister public sector retailers Bharat Petroleumand Hindustan Petroleum revise jet fuel prices on the 1st and16th of every month, based on the average international pricein the preceding fortnight.
In Kolkata, the ATF price has been hiked by Rs 2314.9 toRs 58500.90 per kl, while in Chennai, it will cost Rs 54696.55per kl as against Rs 52,323 per kl currently.