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Oil companies reduce jet fuel price by 2%

PTI 01 Jun 2012, 13:02:21 IST
New Delhi, June 1: State-owned oil companies on Thursday cut jet fuel price by two per cent, 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 two per cent, 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 on Thursday'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 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 would cost Rs 66,587.90 per kl from tomorrow, against Rs 68,022.08 per kl at present.

Jet fuel constitutes over 40 per cent 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, IndianOil, Hindustan Petrol-eum and Bharat Petroleum, revise jet fuel price on the 1st and 16th of every month, based on the average international price in the preceding fortnight.