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Oil firms cut jet fuel price by Rs 170 per litre
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New Delhi: After three rounds of price hike, state-owned oil companies today announced a reduction in jet fuel prices by a marginal Rs 170 per kilolitre (kl).
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was reduced by Rs 169.3 per kl, or 0.25 per cent, to Rs 67,631 effective from Sunday midnight, Indian Oil Corp, making the announcement on behalf of the industry, said.
The marginal reduction comes on back of steep hikes in rates effected on March 1, March 16, and April 1. ATF rates were increased by 3.2 per cent on March 1, Rs 1,298.88 per kl on March 16 and by another 2.8 per cent 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 68,631 per kl from Monday against Rs 68,806.82 per kl now.
Jet fuel constitutes over 40 per cent of an airline’s operating cost and the marginal reduction in prices will somewhat 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.
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