Oil retailers slash jet fuel prices

Oil retailers slash jet fuel prices

New Delh: For the second time in one month, state-owned oil firms Thursday cut jet fuel, or ATF, price in line with softening of rates in the international markets.

Aviation Turbine Fuel (ATF) price at Delhi’s T3 airport was cut by 429 per kilolitre (kl), or 0.75%, to 56,260 per kl from Thursday, an official of Indian Oil Corp, the nation’s largest fuel retailer, said.

The companies had from 16 August cut jet fuel rates by 1,156 per kl or about 2%.

Jet fuel makes up for 40% of an airlines’ operating cost.

ATF in Mumbai, home to the nation’s busiest airport, will cost 446 per kl less at 56,978 per kl from Thursday as against the old price of 57,424 per kl.

No comment could be immediately obtained from airlines on the impact of the price reduction on passenger fares.

ATF prices vary from airport to airport, depending on the local sales tax or VAT.

IOC and its sister public sector retailers, Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL), revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.