Advertisement

HindustanTimes Thu,18 Sep 2014

Jet fuel prices cut by a steep 5.3%

PTI  New Delhi, May 01, 2013
First Published: 19:41 IST(1/5/2013) | Last Updated: 19:43 IST(1/5/2013)

Jet fuel (ATF) prices were today cut by 5.3%, the second steep reduction in rates in one month.

Advertisement

Aviation Turbine Fuel, or ATF, price at Delhi was cut by Rs. 3,545.94 per kilolitre (kl), or 5.35%, to Rs. 62,649.95 per kl, according to Indian Oil Corp, the nation's largest fuel retailer.

The reduction in rate, made possible due to declining international oil prices, came on back of a 5.5% (Rs 3884.98 per kl) cut in rates from April 1.

Softening of international oil prices had yesterday led to a Rs. 3 per litre reduction in petrol rates and Rs. 54.26 per cylinder cut in price of non-subsidised domestic cooking gas price.

The two rounds of cut in prices follow a 2 per cent (Rs 1,324.84 per kl) increase in price from February 1 and a 3.8% (Rs 2,519.83 per kl) hike in rates from March 1.

In Mumbai, jet fuel will cost Rs. 64,624.69 per kl as against Rs. 68,331.91 per kl previously.

Rates at different airports vary because of differential in local sales tax or VAT.

Kolkata would see price cut of Rs. 3657.88 to Rs. 72,514.02 per kl, while it will cost Rs. 68,191.73 in Chennai as against Rs. 71,986.32 per kl previously.

Jet fuel constitutes over 40% of an airline's operating costs and the reduction in prices will ease the burden of the cash-strapped airlines.

No immediate comments were 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 of every month, based on the average international price in the preceding month.


Advertisement
more from Business

Wipro, Infosys enter list of top 5 Indian BPOs

The Indian business process management (BPM) industry has seen a rejig with Wipro and Infosys entering the top five positions in 2013-14, according to Nasscom, the industry body for IT-BPM.

markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved