By IANS
New Delhi : Public sector oil companies Tuesday raised air turbine fuel (ATF) prices by over 13 percent, a move that would force airline operators to increase air fares.
Petroleum ministry officials have confirmed the ATF price hike and said this was done to meet the rising prices in the international market.
“After the ATF price hike, airline operators will be compelled to hike air fares to meet their losses,” an official with a private airline said.
According to officials, the ATF price in Delhi has gone up to Rs.53,309.30 per kilolitre from Rs.47,048.86.
The new ATF charges for foreign airlines would be $1,023.40 per kilolitre. Earlier it was 1,911.76 per kilolitre.
The ATF price has been a contentious issue with airline operators and the civil aviation ministry pitching for reduction in prices.
According to airline operators, the ATF price comprises over 40 percent of the total operational cost of any airline. The ATF price in India is considered to be one of the highest in the world, they said.