New Delhi: Aviation turbine fuel (ATF), or jet fuel, on Monday got cheaper by a steep 12% and rates of non-subsidized cooking gas, or LPG, were slashed by 82.5 per cylinder as global prices continue to tumble. ATF price in Delhi was reduced by 4,765.5 per kilolitre (kl), or 11.9%, to 35,126.82 per kl, oil companies said. This is the third straight monthly reduction. Prices were last cut by 10% on 1 January.

Rates vary at different airports because of differential local sales tax or value-added tax (VAT). Jet fuel constitutes over 40% of an airline’s operating cost and the price cut will lighten the financial burden on cash-strapped carriers. No immediate comment was available from airlines on the impact of the price reduction on passenger fares.

Simultaneously, the oil firms cut prices of non-subsidized LPG, which consumers buy after exhausting their quota of 12, by 82.5 per 14.2 kg bottle. Non-subsidized cooking gas (LPG) now costs 575 per 14.2 kg bottle in Delhi as against 657.50 previously. The reduction comes on the back of three consecutive price hikes in as many months. Rates were last hiked by 49.5 on 1 January. Prior to that, non-subsidized LPG price was raised by 61.50 on 1 December and by 27.5 per cylinder on 1 November. Subsidized LPG costs 419.33 per 14.2 kg cylinder in Delhi.

The three fuel retailers—Indian Oil Corp. Ltd (IOC), Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL)—revise jet fuel and non-subsidized LPG prices on the first day of every month, based on the average international price in the preceding month.