Tuesday, June 16, 2009

Aviation fuel prices raised again, air fares likely to rise

State-run oil firms on Monday hiked aviation fuel prices by over 12 per cent following the rise in crude oil prices in the global market.

Aviation turbine fuel (ATF) will now cost Rs 3,949 more in Delhi at Rs 36,252 per kilolitre, while in Mumbai it will rise to Rs 37,367 per kilolitre from Rs 33,260.8, a senior official of Indian Oil Corp (IOC) said.

The three state retailers - IOC, Hindustan Petroleum and Bharat Petroleum - had May 16 raised jet fuel rates by an average of Rs 108 per kilolitre or 1.8 per cent.

India's leading airlines are now expected to raise fares. While Jet Airways has already said that the hike was "inevitable", Kingfisher Airlines in a statement said it was examining the impact of the latest hike and would take a decision shortly.

International crude oil prices are now ruling at a seven-month high of $72 per barrel.

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