Steepest-ever hike takes ATF price to all-time high

New Delhi: Jet fuel prices on Wednesday were hiked by over 18 per cent - the steepest ever increase - to all-time high levels after international oil price surged to a multi-year high.

The increase - sixth straight this year - led to prices soaring past the Rs1 lakh per kilolitre mark for the first time ever. Aviation turbine fuel (ATF) - the fuel that helps aeroplanes fly - was hiked by 17,135.63 per kl, or 18.3 per cent, to Rs110,666.29 per kl in the national capital, according to a price notification by state-owned fuel retailers.

Jet fuel prices are revised on the 1st and 16th of every month based on the average international price of benchmark fuel in the preceding fortnight. International oil prices had climbed to a 14-year high of near $140 per barrel last week on fears of supply disruption following Russia's invasion of Ukraine. Rates have since mellowed to around $100 per barrel.

In Mumbai, ATF price soared to Rs109,119.83 a kl and it costs Rs114,979.70 in Kolkata. Jet fuel is priced at Rs114,133.73 per kl in Chennai. Jet fuel, which makes up for almost 40 per cent of the running cost of an airline, has this year surged to new highs. The previous peak of Rs 71,028.26 per kl was recorded in August 2008, when international crude oil prices touched $147 per barrel.