The hike comes on back of a 1.7 per cent or Rs 1,039.1 per kl hike in rates effected from Jul 16. The twin increases snapped a six fortnight trend of reduction in rates, including a steep 5 per cent (Rs 3,260 per kl) cut effected from Jun 16 and about 2 per cent (Rs 1,241 per kl) fall in prices from Jul 1.
Jet fuel, which had hit an all-time high peak of Rs 71,028.26 per kl in Aug 2008, shortly after international oil rates touched a record USD 147 per barrel, had fallen to eight-month low of Rs 61,169.08 per kl in early Jul.
In Mumbai, jet fuel will cost Rs 65,884.34 per kl from today as against Rs 63,002.45 per kl previously. Jet fuel constitutes over 40 per cent of an airline's operating costs and the two consecutive increase in prices have wiped away half of the gains the cash-strapped airlines would have made from reductions.
No immediate comments were available from the airlines on the impact of the price hike on passenger fares. The three fuel retailers -- IOC, Hindustan Petroleum and Bharat Petroleum -- revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.