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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).
Prices of aviation turbine fuel (ATF) or jet fuel in Delhi were reduced by Rs 169.30 per kl or 0.25 per cent to Rs 67,631 effective midnight tonight, Indian Oil Corporation said.
The company made the announcement on behalf of the industry.
The marginal reduction comes on the back of a steep hike 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 tomorrow 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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