Aviation fuel prices ready to fly north

New Delhi: Jet fuel prices are likely to go up from the next month as petroleum product prices have firmed up in the global markets.
Unlike petrol and diesel, the PSU oil companies have the freedom to charge international market prices on aviation fuel.
The rates are revised on the first day of each month based on the average international price of the previous month.
Domestic airlines pay a sales tax that results in a higher bill compared with global airlines which are exempt from local taxes according to an international treaty.
“International prices have been fluctuating during May and the oil companies will work out the average price for the entire month for revising the price for June,” a senior IOC official said.
Airlines have yet to finalise the hikes, though they have indicated they will raise prices once ATF prices go up.
26/05/06 Calcutta Telegraph

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