New Delhi: Jet fuel price on Tuesday was cut by a record 14.7% on the back of decline in international rates, making it cheaper than both petrol and diesel.
The price of Aviation Turbine Fuel (ATF) — used to power airplanes — was slashed by ₹ 9,990 per kilolitre, or 14.7%, to ₹ 58,060.97 per kl, according to price notification issued by state-owned oil firms.
This is the second straight monthly reduction in rates and the biggest single cut ever. Prices were slashed by ₹ 8,327.83 per kl, or 10.9%, on 1 December.
The two consecutive price reduction has brought ATF rates to their lowest levels in a year and will provide much-needed relief to cash-strapped airlines.
Rates are now cheaper than both petrol and diesel in most parts of the country and it is less expensive than even non-PDS kerosene in cities like Mumbai.
A litre of petrol, used in motorcycles and cars, costs ₹ 68.65 in Delhi as compared to ₹ 58,060.97 per kl or ₹ 58.06 per litre price for ATF. A litre of diesel, which is mostly used as fuel in trucks and buses, comes for ₹ 62.66.
ATF costs just a shade higher than the price charged for kerosene sold through non-PDS (public distribution system) outlets in Delhi. Non-PDS in Delhi is priced at ₹ 56.59 per litre.
ATF in Mumbai, home to one of the busiest airport in the country, costs ₹ 58,017.33 per kl or ₹ 58.01 per litre. A litre of petrol in the city costs ₹ 74.30 and diesel is priced at ₹ 65.56 per litre. It costs less than even non-PDS kerosene in the city which is sold at ₹ 59.53 a litre.
Rates vary from city to city depending on local taxes.
Continuing its downward march, petrol price Tuesday was cut by 19 paise a litre and diesel rates were reduced by 20 paise.
Petrol now costs ₹ 68.65 a litre in Delhi and diesel is priced at ₹ 62.66.
Rates have been on the decline since 18 October and cumulatively prices have been cut by ₹ 14.18 per litre in case of petrol and ₹ 13.03 a litre for diesel.
State-owned fuel retailers revise rates of ATF on 1st of every month based on average international oil rate and rupee-US dollar exchange rate in the preceding month. Petrol and diesel prices are revised on a daily basis.