New Delhi: For the second time this month, the state-owned oil firms on Wednesday slashed jet fuel prices by 2.1% in line with softening international rates.
The Aviation Turbine Fuel or ATF price in Delhi has been cut by Rs812.33 per kilolitre to Rs37,084.50 per kl, with effect from midnight on Wednesday, an official of the Indian Oil Corp (IOC), the nation’s largest fuel retailer, said.
IOC along with its sister PSUs, Bharat Petroleum Corp and Hindustan Petroleum Corp had from 16 September cut jet fuel rates by as much as 3.2% to Rs37,896.83 per kl.
Jet fuel will cost Rs38,246.60 per kl in Mumbai, the home to the nations’s busiest airport, from Rs39,098.99.
The reduction in rates will help cash-strapped airlines cut fuel cost, which constitutes roughly 40% of their operational cost.
No comments could be immediately obtained from any of the airlines on the possible impact of the cut on fares.
ATF will cost Rs45,235.94 per kl in Kolkata as against Rs46,101.86 per kl currently and Rs40,956.89 per kl in Chennai (Rs 41,850.52 per kl currently).
The three firms had in three instalments raised jet fuel price by 7.6% since mid-July. Jet fuel price in Delhi on 16 July was Rs36,388.18 per kl and was raised first to Rs36,922.67 per kl on 1 August and then by 4.5% to Rs38,585.24 per kl. Last month it was marginally raised by 1.4% to Rs39,118 per kl.
The three oil firms revise jet fuel prices on the first and the 16th day of every month based on the average international oil price in the previous fortnight.