State- run oil companies, Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL), recently raised jet fuel, or Aviation Turbine Fuel (ATF), prices by 2.7 per cent after lowering the rates during the last fortnightly revision on July 16, 2010.

Aviation Turbine Fuel rates in Delhi has been increased by Rs 1,078 per kilolitre or 2.7 per cent, to Rs 41,177 per kilolitre. In Mumbai, the price of ATF has been was raised by Rs 1,123 to Rs 42,484 per kilolitre. The increase follows a 3.3 per cent, or Rs 1,390 per kilolitre, hike in prices that oil firms had announced on July 16, 2010.

Jet fuel in Delhi was priced at Rs 37,982.22 per kilolitre in the second half of February this year before international oil rates started firming up resulting in increase in domestic rates. Including the recent hike, ATF rates, which make up for roughly 40 per cent of the operating cost of an airline, have been cranked up on nine occasions since March this year. However, exceptions were made on two occasions — June 1, 2010 and on July 16, 2010 — when the rates were cut. The three state-run oil firms revise jet fuel prices on the first and the 16th of every month, based on the average global oil price in the previous fortnight.