The state owned Oil firms have hiked the jet fuel rates by 1.7 percent in line with the International oil rates. The price of the aviation turbine fuel also known as jet fuel was hiked by Rs. 1,039.1 per kilo litre of 1.7 percent to Rs. 62,208.18.

The hike has been made at the back of the reductions in six fortnights including a steep 5 percent Rs. 3,260 per kl. The cut was effective from June 16, and about 2 percent fall in the prices from July 1. 2012.

In the month of August 2008, the jet fuel had hit an all time high of Rs. 71,028 per kl shortly after international oil rates touched a record USD 147 per barrel. It had fallen to eight month low of Rs. 61, 169.08 per kl earlier this month.

From July 16, 2012 the jet fuel in Mumbai will cost Rs. 63,002.45 per kl against Rs. 61,933 per kl earlier. It is the jet fuel which constitutes 40 percent of the airline operations costs and the hike today will wipe off the gain for the already cash trapped airlines. None of the airline authorities were immediately available for comments on the impact on the passenger fares.