New Delhi: Aviation turbine fuel (ATF) prices were cut on Monday by a steep 5.5%, reversing the rising trend of past two months.

ATF prices at T3 terminal in Delhi were cut by about 3,885 per kilolitre (kl), or 5.5%, to 66,196 per kl from Monday, according to Indian Oil Corp. Ltd, the nation’s largest fuel retailer.

The reduction comes on back of a 2% ( 1,324.84 per kl) increase in price from 1 February and a 3.8% ( 2,519.83 per kl) hike in rates from 1 March.

In Mumbai, jet fuel will cost 68,332 per kl as against 72,451.79 per kl previously.

Rates at different airports vary because of differential in local sales tax, or value-added tax.

Kolkata would see price cut of 3,066 to 76,172 per kl, while it will cost 71,986 in Chennai as against 76,239.44 per kl previously.

Jet fuel constitutes over 40% of an airline’s operating costs and the reduction in prices will ease the burden on cash-strapped airlines.

No immediate comments were available from the airlines on the impact of the price reduction on passenger fares.

The three fuel retailers—Indian Oil, Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd—revise jet fuel prices on the 1st of every month, based on the average international price in the preceding month.