ATF prices to fall by 2.5% from midnight

ATF prices to fall by 2.5% from midnight

New Delhi: State-owned oil firms on Monday cut aviation turbine fuel (ATF) price by 2.5% on falling global rates to give some relief to Indian carriers.

Jet fuel price in Delhi was cut by Rs974 per kilolitre or 2.5% to Rs37,982 per kl effective midnight tonight, an official of the Indian Oil Corp, the nation’s largest oil firm, said.

This is the second reduction in ATF rates this month, with prices cut by as much as 5.5% on 1 February to Rs38,956.38.

Jet fuel constitutes roughly 40% of the operating cost of an airline and the reduction in fuel rates would help ease the burden on Indian carriers.

No immediate comment was available from airlines on the impact the latest cut would have on air fares.

The two cuts have more than negated the steep 6.5% hike in ATF rates of 16 January when IOC and other state-owned fuel retailers Hindustan Petroleum and Bharat Petroleum raised ATF price to Rs41,216.43 per kl. The fuel rates are now at par with those prevalent in October 2009.

In Mumbai, the rates were reduced by Rs1,015 to Rs39,167 per kl.

The three oil firms revise jet fuel prices on the first and the 16th of every month based on the average global oil price in the previous fortnight.

The basket of crude oil India imports has averaged $72.09 this month against the January average of $76.61.