New Delhi: After increasing it four times in a row, the state-run oil firms on Wednesday cut jet fuel prices by 5.7% on easing international rates.
Aviation Turbine Fuel (ATF) rates in Delhi were lowered by Rs2,221 per kilolitre to Rs36,338 per kilolitre, effective from Thursday, an official of Indian Oil Corp (IOC) said.
Indian Oil, Bharat Petroleum and Hindustan Petroleum had in the past two months raised ATF rates four times on firming international oil prices. Jet fuel rates were Rs31,614.51 per kilolitre on 1 May and in four instalments they were raised to Rs38,557.56 per kilolitre by 1 July.
“International rates have eased since,” he said. The basket of crude oil India buys has averaged for July at USD 63.42 per barrel. The July average was lower than USD 69.12 a barrel average price of Indian basket of crude for June. It was also lower than USD 69.57 a barrel average in the second fortnight of June based on which jet fuel rates were hiked by 6% from 1 July.
On 1 July, jet fuel rates were increased by Rs2,306 per kilolitre in Delhi to Rs38,557.56 per kilolitre.
In Mumbai, home to the nation’s busiest airport, the rate will come down from Rs39,789.02 per kilolitre to Rs37,475 per kilolitre.
The decline in ATF price, which constitutes 40% of airlines’ operating cost, will ease some pressure off the cash-strapped domestic carriers.
Jet fuel in Kolkata will be cheaper at Rs44,411 per kilolitre from Rs46,710.92 per kilolitre, while in Chennai the price has been reduced by Rs2,360 per kilolitre to Rs40,164 per kilolitre.
ATF prices had peaked to Rs71,028.26 per kilolitre, in Delhi, in August last year as international crude prices touched a historic high of $147 a barrel. But subsequently the rates had come down, slashed every month till October and twice a month from November.
The three firms revise jet fuel rate every fortnight based on trends in international markets.