Oil firms increase jet fuel prices by 6% to Rs58,310.45 per kilolitre

State-owned oil firms on Tuesday increased jet fuel prices by a massive 6%, the 11th rate increase in six months.

Aviation turbine fuel (ATF) rates in Delhi have been raised by Rs3,377.09 per kilolitre (kl), or 6.14%, to Rs58,310.45 per kl with effect from midnight tonight, an official of Indian Oil Corp, the nation's largest fuel retailer, said.

The hike comes on the back of three consecutive massive hikes effected since February this year, when crude oil spiked to over US$ 100 per barrel.

Today's hike is the 11th straight increase in jet fuel prices since October, 2010, when international crude oil prices started soaring.

The ATF price in Delhi on October 1, 2010 was Rs40,728.52 per kl. The rates have been increased by Rs 17,581.93 per kl, or 43.16%, in 11 tranches since then.

Jet fuel will cost Rs59 031.39 per kl in Mumbai, home to the nation's busiest airport, from Wednesday, as against Rs55,500.06 per kl currently.

No comment could be immediately obtained from airline companies on the impact of the latest price hike on passenger fares.

Fuel cost accounts for 40% of the airlines' operating cost.

Indian Oil Corp and sister public sector retailers Bharat Petroleum and Hindustan Petroleum revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.