Last Updated: March 01, 2021, 2028 hrs IST

ATF price hike may lead to increase in air fares: Experts

Aviation turbine fuel (ATF) price was raised by Rs 1,512.38 per kilolitre, or 2.96 per cent, to Rs 52,491.16 per kl in the national capital, according to a price notification of state-owned fuel retailers.

On Saturday there was a 3% hike in the prices making it the fourth increase in two months, while petrol and diesel rates remained unchanged.

This is the fourth increase in price since December 1, 2020. Rates had gone up by 7.6 per cent (Rs 3,288.38 per kl) on December 1, by 6.3 per cent (Rs 2,941.5 per kl) on December 16 and by Rs 1,817.62 (3.69 per cent) on January 1. ATF prices are revised on 1st and 16th of every month based on the average price of benchmark international rate and foreign exchange rate in the preceding fortnight.

Prices vary from state to state depending on the incidence of local taxes. The increase in the price of ATF, which makes for close to 40 per cent of the running cost of an airline, will put additional burden on airlines given the business situation due to COVID-19.

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