Mumbai: State oil marketing companies hiked the price of jet fuel by 8.2%, the first such increase since last July while the rates of non-subsidised LPG was increased by Rs 5 per cylinder on firming international oil rates.
Price of aviation turbine fuel (domestic) in Delhi was increased to Rs 50,363 per kilolitre from Rs 46,513 per kilolitre. The price revision came into effect from Saturday midnight.
In February the jet fuel price was slashed 11.3%. In January, jet fuel price was reduced by 12.5% and between October and December last year, prices declined 11%. Jet fuel price came down to factor decline in crude oil price.
Fuel costs account for about 40% of an airline’s operating expenses. Domestic airlines pay more for fuel than their regional peers, owing to state and central levies.
For airlines, hit hard by high fuel costs for much of 2013 and the first part of last year, the drop in jet fuel prices will mean lower operating costs and improved profitability.
01/03/15 Business Standard
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Price of aviation turbine fuel (domestic) in Delhi was increased to Rs 50,363 per kilolitre from Rs 46,513 per kilolitre. The price revision came into effect from Saturday midnight.
In February the jet fuel price was slashed 11.3%. In January, jet fuel price was reduced by 12.5% and between October and December last year, prices declined 11%. Jet fuel price came down to factor decline in crude oil price.
Fuel costs account for about 40% of an airline’s operating expenses. Domestic airlines pay more for fuel than their regional peers, owing to state and central levies.
For airlines, hit hard by high fuel costs for much of 2013 and the first part of last year, the drop in jet fuel prices will mean lower operating costs and improved profitability.
01/03/15 Business Standard
