New Delhi: State-owned oil companies on Thursday cut jet fuel prices by 2 percent, the fourth straight reduction in rates since April.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was reduced by Rs 1,376.81 per kl, or 2 percent, to Rs 65,670.14 per kl with effect from midnight tonight, Indian Oil Corp, making the announcement on behalf of the industry, said.
The reduction comes on back of Rs 753.8 per kl cut in rates in three previous fortnights.
Even after today's reduction, ATF prices are still not at level before the steep increases effected in March and early April.
ATF rates were increased by 3.2 percent on March 1, Rs 1,298.88 per kl on March 16 and by another 2.8 percent on April 1. Jet fuel was priced at Rs 62,557.12 per kl before the three price increases.
In Mumbai, jet fuel will cost Rs 66,587.90 per kl from tomorrow against Rs 68,022.08 per kl now.
Jet fuel constitutes over 40 percent of an airline's operating cost and the reduction in prices will ease the burden of the cash-strapped airlines.
No immediate comment was 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 and 16th of every month, based on the average international price in the preceding fortnight.
PTI
First Published: Thursday, May 31, 2012, 20:29