Flight tickets may become costlier as oil companies hike jet fuel price

Mumbai: Flight tickets may become costlier as the public sector oil marketing companies increased the price of Aviation turbine fuel (ATF) or jet fuel. ATF price was increased by Rs 13,911.07 per kilolitre, or 14.1% in the national capital to Rs 1,12,419.33 per kl.

This is the third straight increase. Earlier in August, the companies hiked the rate by 8.5% or Rs 7,728.38 per kl. Prior to that, rates had gone up by 1.65% or Rs 1,476.79 per kl on July 1. In three increases, ATF prices have gone up by a steep Rs 23,116.24 per kl.

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State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise ATF prices on the 1st and 16th of every month. The price is revised  based on rates of benchmark international oil rates in the previous fortnight.  Jet fuel price make up almost 40% of the operating cost of an airline.