Airfares may become expensive after aviation turbine fuel (ATF) were on Wednesday raised by a steep 9.2 per cent in line with global trends.
In the fourth straight monthly increase in rates on global cues, ATF price in Delhi was increased by Rs 3,945.47 per kilolitre, or 9.2 per cent, to Rs 46,729.48 per kilolitre.
ATF prices in Kolkata increased from Rs 47561.18 to Rs 51492.43. In Mumbai, fuel prices increased from Rs 41,756.16 to Rs 45700.55 and in Chennai jet fuel prices hiked to Rs 49404.76 from 45,346.82 on May 1, 2016. Rates vary at different airports because of differential local sales tax or value-added tax (VAT).
The hike comes on the back of 1.5 per cent increase effected on May 1 and a steep Rs 3,371.55 (8.7 per cent) hike on April 1. Prior to that, rates were hiked by steep 12 per cent, or by Rs 4,174.49, on March 1.
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.
The increase in ATF was followed up on Wednesday with an increase in non-subsidised LPG by Rs 21 a cylinder by oil companies, the second monthly increase in rates.
Non-subsidised cooking gas (LPG) now costs Rs 548.50 in Delhi as against Rs 527.50 previously. The hike comes on the back of a Rs 18 per cylinder increase in price on May 1. Subsidised LPG costs Rs 419.18 per 14.2-kg cylinder in Delhi.
The three fuel retailers — Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum — revise jet fuel and non-subsidised LPG prices on the first day of every month, based on the average international price in the preceding month.