 "ATF to cost Rs 312 less per kl from midnight")
New Delhi: State-owned oil companies today reduced jet fuel prices by a marginal Rs 312 per kilolitre, the second reduction in rates this month.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was reduced by Rs 311.74 per kl, or 0.46 percent, to Rs 67,319.71 with effect from midnight tonight, Indian Oil Corp, making the announcement on behalf of the industry, said.[caption id=“attachment_293805” align=“alignleft” width=“380” caption=“Cheaper ATF. Reuters”]
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The reduction comes on back of a Rs 169.3 per kl cut in rates effected from 16 April. But these reduction are dwarfed by the steep increases effected in March and early April. ATF rates were increased by 3.2 percent on 1 March, Rs 1,298.88 per kl on 16 March and by another 2.8 percent on 1 April.
Jet fuel was priced at Rs 62,557.12 per kl before the three price increases.
In Mumbai, jet fuel will cost Rs 68,306.21 per kl from Tuesday against Rs 68,630.93 per kl now.
Jet fuel constitutes over 40 percent 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.
PTI