Bad News – Airfare Set to Get Costlier as ATF Price Hiked by a steep 9.2%..
In what could make Airfare costlier, the price of Aiviation Turbine Fuel (ATF) has been hiked by a steep 9 percent.
Jet fuel constitutes over 40 percent of an airlines operating cost and the price increase will add to the financial burden on cash-strapped carriers.
Rates vary at different airports because of differential local sales tax or value-added tax (VAT).
The move comes just a day after Petrol price was hiked by Rs 2.58 a litre and diesel by Rs 2.26 per litre, the second increase in rates this month.
Petrol will cost Rs 65.60 per litre in Delhi after the increase while diesel will cost Rs 53.93/litre. Prices were last hiked on May 17.
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