Image Source : PTI (REPRESENTATIONAL) ATF price hits all-time high after 16% hike HighlightsThis is the 11th increase in jet fuel price this year The increase in jet fuel price will raise the operating cost for airlines ATF makes up to 40 per cent of an airline’s operating cost Air travel is likely to become costlier after the price of aviation turbine fuel (ATF), the fuel that helps aeroplanes fly, was on Thursday hiked by 16 per cent to an all-time high. This is the steepest ever hike in the price of jet fuel and comes at a time when international oil rates are hardening due to supply constraints. The price of ATF has been increased by Rs 19,757.13 per kilolitre, or 16.26 per cent, to Rs 1,41,232.87 per kl (Rs 141.2 per litre) in the national capital, according to a price notification of state-owned fuel retailers. ATF rates differ from state to state, depending on the local taxation. ATF in Mumbai now costs Rs 1,40,092.74 per kl, while it is priced at Rs 1,46,322.23 in Kolkata and Rs 1,46,215.85 in Chennai. The hike, which comes on the back of a marginal 1.3 per cent (Rs 1,563.97 per kl) cut in rate on June 1. The June 1 reduction had come after 10 rounds of price increases this year. ATF prices are revised on the 1st and 16th of every month based on the average of benchmark international rates. On Thursday, brent crude was trading at USD 119.16 per barrel — the highest in almost a decade. Brent is the world’s most popular crude oil benchmark. The increase in jet fuel price will raise the operating cost for airlines. ATF makes up to 40 per cent of an airline’s operating cost. Fuel rates have been on the rise globally due to supply concerns following Russia’s invasion of Ukraine and demand returning after being hit by the pandemic. India is 85 per cent dependent on imports to meet its oil needs. With PTI Inputs READ MORE: Minimum 10-15% increase in airfares must due to ATF price increase: SpiceJet READ MORE: Petrol, diesel shortage news: Oil companies quell rumours, say ‘fuel supply normal’ Latest Business News
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