DOMESTIC carriers have to spend more on jet fuel from this month after China National Aviation Fuel Group Corp, the nation's dominant jet fuel supplier, raised the price by 10 yuan (US$1.50) per ton, according to a source familiar with the situation.

China's aviation regulator raised the supplier's general purchase cost by 10 yuan to 5,610 yuan per ton on July 1, which enabled the group to raise the price of jet fuel that it sells to domestic airlines, the source said yesterday.

"The price increase will slightly increase airlines' jet fuel costs," said Li Lei, an analyst at China Securities Co.

Air China, the country's flagship international airline, is set to spend an extra 19 million yuan on jet fuel annually after the increase, based on its annual consumption of 1.9 million tons of fuel on domestic routes, Li said.

China Southern Airlines, the country's largest carrier that uses about 2.4 million tons on domestic routes annually, is likely to spend 24 million yuan more.

China Eastern Airlines may spend an additional 25.3 million yuan based on its annual consumption of 2.53 million tons, according to Li.