The state run Oil Marketing Companies (OMCs) on Tuesday hiked the prices of Aviation Turbine Fuel (ATF) or Jet fuels in the wake of rising crude oil prices in the international market.
The latest average price of ATF has been raised by over 9% to Rs 2,750 per kilo litre from Rs 30,191.32 (average) to an average of Rs 32,940.39 on March 31. This was the second consecutive hike by the OMCs in a fortnight.
This is the third time, when OMCs have raised the jet fuel prices since September – first on January 16, when ATF prices had been raised by 3.3% and second a fortnight ago on March 16, when ATF prices jumped marginally by 1.7%.
In Delhi, the jet fuel would cost now Rs 29,925.97 per kl while in Mumbai, it is now available at Rs 30,784.81. Similarly in Kolkata, the new price of ATF is Rs 37,744.02 whereas it would cost Rs 33,306.77 in Chennai.
The ATF prices were on the peak on August 01, 2008 at Rs 75,781.62 (avg) when the price of crude oil in the international market was soaring at $147 per barrel. But after that, the prices of crude oil began to dip and plunged below to $40 in January. To making parity with the crude oil prices at international market, OMCs also deducted the jet fuel prices, but the aircraft players did not deducted airfare, arguing that reducing the airfare would put adverse impact on their profits.
Owing to higher airfare, the airline firms were facing travel crunch in domestic airline while there was no effect of ATF cost in the international airlines as they would not have to pay the sales tax and various duties charged by the state governments unlike domestic players have to.
But, according to sources, this latest hike in ATF prices would not have an impact on the airfare of state-run carrier, Indian Airlines, as airline official has denied hiking the airfare in near future. On the other hand, the private players are adopting wait-and-watch strategy and after analysing the situation, they would take any steps.
|
|
Comments:
