Jet fuel prices cut by a steep 5.3%
New Delhi: Jet fuel (ATF) prices were Wednesday cut by 5.3 percent, the second steep reduction in rates in one month.
Aviation Turbine Fuel, or ATF, price at Delhi was cut by Rs 3,545.94 per kilolitre (kl), or 5.35 percent, to Rs 62,649.95 per kl, according to Indian Oil Corp, the nation's largest fuel retailer.
The reduction in rate, made possible due to declining international oil prices, came on back of a 5.5 percent (Rs 3884.98 per kl) cut in rates from April 1.
Softening of international oil prices had yesterday led to a Rs 3 per litre reduction in petrol rates and Rs 54.26 per cylinder cut in price of non-subsidised domestic cooking gas price.
The two rounds of cut in prices follow a 2 percent (Rs 1,324.84 per kl) increase in price from February 1 and a 3.8 percent (Rs 2,519.83 per kl) hike in rates from March 1.
In Mumbai, jet fuel will cost Rs 64,624.69 per kl as against Rs 68,331.91 per kl previously.
Rates at different airports vary because of differential in local sales tax or VAT.
Kolkata would see price cut of Rs 3657.88 to Rs 72,514.02 per kl, while it will cost Rs 68,191.73 in Chennai as against Rs 71,986.32 per kl previously.
Jet fuel constitutes over 40 percent of an airline's operating costs and the reduction in prices will ease the burden of the 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 -- IOC, Hindustan Petroleum and Bharat Petroleum -- revise jet fuel prices on the 1st of every month, based on the average international price in the preceding month.