Jet fuel or aviation turbine fuel (ATF) price was on Sunday hiked by a steep 6 per cent on firming international rates, which could force airlines to increase airfares. This is the third straight increase in rates since August. Aviation fuel accounts for the bulk of the operating cost of airlines in India.
Aviation turbine fuel (ATF) will now cost Rs. 53,045 per kilolitre (kl) in Delhi, Rs. 3,025 per kl more than Rs. 50,020 previously, according to a price hike notification by Indian Oil Corp, the nation's biggest fuel retailer. This the third consecutive monthly hike in ATF price, the last being by 4 per cent (Rs. 1,910 per kl) on September 1. Also, cooking gas (LPG) price was hiked by Rs. 1.50 per cylinder in line with the government decision to raise rates every month to eliminate subsidies by March.