For the third time in 31 days, the prices of aviation turbine fuel (ATF) have been raised by the State-run oil companies in Delhi.
On April 15, 2009, the companies announced a price hike of 6.7%, in line with international ATF prices.
On April 1, 2009, Indian Oil Corp. Ltd (IOC ), Bharat Petroleum Ltd and Hindustan Petroleum Ltd had raised ATF prices by 10 per cent, as a result of which the fuel became Rs 2,651.02 per kl costlier.
Before this, on March 31, 2009, state-run oil companies hiked the ATF price to 29,926 per kl, 9.7 per cent higher, in Delhi, against Rs 27,274.95.
On March 16, 2009, aviation turbine fuel prices were hiked by Rs168.85 per kl. In less than 40 days, the aviation turbine fuel price hike has been about 17.8 per cent.
In Mumbai, ATF rates were raised to Rs 32,855 per kl from Rs 30,784.81 per kl.
In August 2008,. the ATF prices touched an all-time high of Rs71,028.26 per kl in Delhi.
This is a major jolt for the aviation industry that has not been doing too well in the present recession hit scenario.
U.S. crude, touched almost $50.5 on April 1,009, In the first week of March 2009, the prices were almost just above $40 a barrel.
The prices of the jet fuel are revised on the 1st and 16th of every month by IOC, Hindustan Petroleum and Bharat Petroleum.
The fuel prices all over the world have been rising at a steady rate since the world economy was stung by the financial meltdown. It remains to be seen how the aviation industry will cope with these price hikes.
Meanwhile, airlines have not hiked their fares, due to dipping customer demand. In March 2009, the number of domestic flyers fell by 15 per cent over the same period in 2008.
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