Aviation Turbine Fuel (ATF) or jet fuel prices have increased 3 percent to Rs 46,826 per kilolitre, which came into effect from October 1. This is the first month the jet fuel prices rose after two consecutive months of decreasing costs.
Last month, the prices fell by 3.8 percent. In a statement, Indian Oil Corporation (IOC) said the price for international carriers has been fixed at $494 for October. It was $480.31 in September after the prices fell.
ATF prices account for nearly 30-35 per cent of operating costs for airlines and directly impacts profit margins. The prices differ in different cities.
The jet fuel price rise also seems to have impacted the share price of domestic carriers. Following the news, the SpiceJet stock was trading at Rs 60.25 at around 10:25 am on Monday, up 2.99 percent from its previous close. Similarly, the InterGlobe Aviation shares were trading at Rs 934.75 apiece, up 2.04 percent from its previous close around the same time. Jet Airways shares rose 3.95 percent and were trading at Rs 495 apiece on the Bombay Stock Exchange.
The Indian Oil stock was trading at Rs 601.45 at around 10:30 am on Monday, up 3.21 percent from its previous close on the Bombay Stock Exchange.
The revised ATF prices, new and Old (per kilolitre) are:
|Cities||New Price (Oct 1)||Old price (Sept 1)|
|Delhi||Rs 46, 826||Rs 45, 411|
|Kolkata||Rs 51, 562||Rs 50, 265|
|Mumbai||Rs 45, 743||Rs 44, 418|
|Chennai||Rs 49, 474||Rs 48, 108|