New Delhi, Apr 30: State-owned oil companies on Monday reduced jet fuel prices by a marginal Rs 312 per kilolitre or kl, 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 per cent, to Rs 67,319.71 with effect from midnight tonight, Indian Oil Corp, making the announcement on behalf of the industry, said.
The reduction comes on back of a Rs 169.3 per kl cut in rates effected from April 16. But these reduction are dwarfed by the steep increases effected in March and early April. 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 68,306.21 per kl from tomorrow against Rs 68,630.93 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.