Fuel prices are on the uptick, as was forewarned by the Economic Survey yesterday. As though waiting for this cue from the Govt, Indian Oil Corporation announced a 3% increase or a Rs.1539/kL in jet fuel prices, effective from today.
This is bad news for the aviation companies as this impacts their margins pretty strongly. In an immediate reaction to this, all the listed aviation stocks are down in the red today.
Spicejet is down 2% at Rs.63; Indigo is the biggest loser in the pack, down almost 8% at Rs.830 levels; Jet Airways is down almost 3% at Rs.390 levels.
The price of jet fuel prices was hiked on 1st Jan too and that was a steep one – up 8.6%. Oil firms revise rates of ATF and cooking gas on 1st of every month based on oil price and foreign exchange rate in the preceding month.